On Monday, the opening price of a certain stock was $100

Question

Source: Official Guide On Monday, the opening price of a certain stock was $100 per share and its closing price was $110 per share. On Tuesday the closing price of the stock was 10 percent less than its closing price on Monday, and on Wednesday the closing price of the stock was 4 percent greater than its closing price on Tuesday. What was the approximate percentage change in the price of the stock from its opening price on Monday to its closing price on Wednesday? A. A decrease of 6% B. A decrease of 4% C. A decrease of 1% D. An increase of 3% E. An increase of 4% The OA is D

Brent@GMATPrepNow · Answer

BTGmoderatorLU wrote:Source: Official Guide On Monday, the opening price of a certain stock was $100 per share and its closing price was $110 per share. On Tuesday the closing price of the stock was 10 percent less than its closing price on Monday, and on Wednesday the closing price of the stock was 4 percent greater than its closing price on Tuesday. What was the approximate percentage change in the price of the stock from its opening price on Monday to its closing price on Wednesday? A. A decrease of 6% B. A decrease of 4% C. A decrease of 1% D. An increase of 3% E. An increase of 4% The OA is D On Monday, the opening price of a certain stock was $100 per share and its closing price was $110 per share. On Tuesday the closing price of the stock was 10 percent less than its closing price on Monday, We can say that the stock LOST 10% of its value. OR we can say that the stock RETAINED 90% of its value. In other words, Tuesday's closing price = 90% of $110 = (0.9)($110) = $99 On Wednesday, the closing price of the stock was 4 percent greater than its closing price on Tuesday In other words, the stock increased by 4% of $99 In other words, Wednesday's closing price = $99 + (4% of $99) ASIDE: since the question asks us for an approximate percentage change, we can APPROXIMATE the value of 4% of $99 4% of $100 = $4, so 4% of $99 is VERY CLOSE to $4 Wednesday's closing price ≈ $99 + $4 ≈$103 What was the approximate percentage change in the price of the stock from its opening price on Monday to its closing price on Wednesday? The stock increased from $100 to $103 This represents a 3% increase. Answer: D Cheers, Brent

Scott@TargetTestPrep · Answer

BTGmoderatorLU wrote:Source: Official Guide On Monday, the opening price of a certain stock was $100 per share and its closing price was $110 per share. On Tuesday the closing price of the stock was 10 percent less than its closing price on Monday, and on Wednesday the closing price of the stock was 4 percent greater than its closing price on Tuesday. What was the approximate percentage change in the price of the stock from its opening price on Monday to its closing price on Wednesday? A. A decrease of 6% B. A decrease of 4% C. A decrease of 1% D. An increase of 3% E. An increase of 4% The closing price on Monday was 110, and the closing price on Tuesday was 110 x .9 = 99. The closing price on Wednesday was: 110 x 0.9 x 1.04 = 102.96, which is about 103. We use the percent change formula: (New - Old)/Old x 100, so the percent change is: (103 - 100)/100 x 100 = increase of 3% Answer: D

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