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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## The value of a share was 25% less in the 2nd quarter over ##### This topic has 2 expert replies and 0 member replies ### Top Member ## The value of a share was 25% less in the 2nd quarter over ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult The value of a share was 25% less in the 2nd quarter over the 1st quarter, and 20% more in the 3rd quarter over the 2nd quarter. What should be the percentage change in the value from 3rd to 4th quarter, if the percentage increase of the value from 1st to 4th quarter is 20%? A. -33.3% B. -20% C. 0 D. +20% E. +33.3% OA E Source: e-GMAT ### GMAT/MBA Expert GMAT Instructor Joined 25 Apr 2015 Posted: 2444 messages Followed by: 18 members Upvotes: 43 Top Reply BTGmoderatorDC wrote: The value of a share was 25% less in the 2nd quarter over the 1st quarter, and 20% more in the 3rd quarter over the 2nd quarter. What should be the percentage change in the value from 3rd to 4th quarter, if the percentage increase of the value from 1st to 4th quarter is 20%? A. -33.3% B. -20% C. 0 D. +20% E. +33.3% We can let the first quarter value = n. Therefore, 2nd quarter is 0.75n and 3rd quarter is 0.75n x 1.2 = 0.9n. We need the 4th quarter to be 1.2n. So letâ€™s determine what percent increase we need from the 3rd to the 4th quarter. 0.9n * (100 + x)/100 = 1.2n 9(100 + x)/100 = 12 900 + 9x = 1200 9x = 300 x = 33.3 Alternate Solution: Letâ€™s assume that the value of a share in Q1 was 100. After a 25% decrease, the value in Q2 was (100)(0.75) = 75. Then, in Q3, the share increased by 20%, so its value at the end of Q3 was (75)(1.2) = 90. The desired value for the share for Q4 is 20% more than its value in Q1, which is (100)(1.2) = 120. We need to determine the percent increase needed from Q3 (90) to Q4(120). Using the percent increase formula (New - Old)/Old x 100, we have: (120 - 90)/90 x 100 = 30/90 x 100 = 1/3 x 100 = 33.3%. Answer: E _________________ Scott Woodbury-Stewart Founder and CEO scott@targettestprep.com See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews ### GMAT/MBA Expert GMAT Instructor Joined 25 May 2010 Posted: 15257 messages Followed by: 1861 members Upvotes: 13060 GMAT Score: 790 Top Reply BTGmoderatorDC wrote: The value of a share was 25% less in the 2nd quarter over the 1st quarter, and 20% more in the 3rd quarter over the 2nd quarter. What should be the percentage change in the value from 3rd to 4th quarter, if the percentage increase of the value from 1st to 4th quarter is 20%? A. -33.3% B. -20% C. 0 D. +20% E. +33.3% Let the 1st-quarter value = 100. Since 2nd-quarter value is 25% less, the 2nd-quarter value = 100 - (25% of 100) = 100 - 25 = 75. Since the 3rd-quarter value is 20% more than the 2nd-quarter value, the 3rd-quarter value = 75 + (20% of 75) = 75 + 15 = 90. Since the 4th-quarter value must equal 120 -- 20% more than the 1st-quarter value -- the percent increase from the 3rd quarter (90) to the 4th quarter (120) = increase/smaller * 100 = (120-90)/90 * 100 = 1/3 * 100 = 33.33%. The correct answer is E. _________________ Mitch Hunt Private Tutor for the GMAT and GRE GMATGuruNY@gmail.com If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon. Available for tutoring in NYC and long-distance. For more information, please email me at GMATGuruNY@gmail.com. Student Review #1 Student Review #2 Student Review #3 Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now. • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code • 5-Day Free Trial 5-day free, full-access trial TTP Quant Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • Award-winning private GMAT tutoring Register now and save up to$200

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