Source: Official Guide Revised GRE 1st Ed. Arithmetic Exercises; #12

2

A particular stock is valued at $40

A particular stock is valued at $40 per share. If the value increases by 20 percent and then decreases by 25 percent, what will be the value of the stock per share after the decrease?

1 Explanation

1

Chandan Troughia

Here the BASE price is 40$. so according to the first statement the 20% increase can be calculated by multiplying the BASE to the Decimal equivalent of 100% + 20% = 120% which is 1.2 .

Therefore => 1.2(40$) = 48$

Now as per the second statement the 25% decrease can be calculated by multiplying the NEW BASE(48$) with the decimal equivalent of 100% - 25% = 75% which is .75 .

Therefore => .75(48$) = 36$

Solved.

Apr 21, 2015 • Comment

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