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Stock market

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Master | Next Rank: 500 Posts
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by Mclaughlin » Sun Aug 03, 2008 12:06 pm
When the stock market opened yesterday, the price of a share of stock X was . When the market closed, the price was . Of the following, which is closest to the percent increase in the price of stock X?
(A) 0.5%
(B) 1.0%
(C) 6.7%
(D) 7.1%
(E) 7.5%

OA is D I got E.

Please explain?!
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by newera » Sun Aug 03, 2008 12:52 pm
pls write out the question completely. the closing price was what?
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by Mclaughlin » Sun Aug 03, 2008 1:31 pm
OMG, i'm so sorry!

When the stock market opened yesterday, the price of a share of stock X was 10 1/2 . When the market closed, the price was 11 1/4. Of the following, which is closest to the percent increase in the price of stock X?
(A) 0.5%
(B) 1.0%
(C) 6.7%
(D) 7.1%
(E) 7.5%
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by newera » Sun Aug 03, 2008 1:40 pm
Thanks for that!

An easy way to figure out percent change is the following:

(ending price-beginning price)/beginning price
or
(ending price/beginning price) - 1

11.25 is also 45/4 and 10.5 is also 21/2 or 42/4.

45/4 - 42/4 = 3/4

(3/4)/(21/2) = 1/14 which is .071 or 7.1%
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