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.
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