Non-dividend-paying stock

[sulabh]

An investor purchased a share of non-dividend-paying stock for p dollars on Monday. For a certain number of days, the value of the share increased by r percent per day. After this period of constant increase, the value of the share decreased the next day by q dollars and the investor decided to sell the share at the end of that day for v dollars, which was the value of the share at that time. How many working days after the investor bought the share was the share sold, if ?
A. Two working days later.
B. Three working days later.
C. Four working days later.
D. Five working days later.
E. Six working days later.

[punit.kaur.mba]

The question seems incomplete. What do you have after "if" at the end?


However, I can write the equation needed to solve this question. Substitute the values and you should get the answer.

Since the value of the share increases by r percent daily. Lets say on the nth day the value of the share will be

P(1+r/100)^n where P is the original value at which the share was bought. r is the percent. n is the number of days

So P(1+r/100)^n - q = v.
You can solve this using the given data.

[beeparoo]

No one can solve this problem because information is missing from it. Otherwise, how can you isolate time, n, and have a final ans that matches one of the answer choices???

@sulabh: Your copy/paste did not include a vital equation, which comes right after the "IF"

The question should be: "How many working days after the investor bought the share was the share sold, if
r = 100{sqrt[(v+q)/p] - 1}?"

[punit.kaur.mba]

IMO answer is (A) Two working days later.

Use the equation Beeparoo gave, and solving it with the equation I derived in previous post.

Whats the OA?

[raajan_p]

I thought this question was left incomplete without any further discussion...

Can any of the forum users or experts throw some light on this question...

Thanks in Advance!

[cramya]

Raajan,

Refer to

https://www.beatthegmat.com/stocks-t17461.html

[raajan_p]

Raajan,

Refer to

https://www.beatthegmat.com/stocks-t17461.html

Thanks a lot Cramya