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# The price of a certain stock rose by 25 percent and then

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Retired Moderator
Joined: 07 Jun 2014
Posts: 4803
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
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The price of a certain stock rose by 25 percent and then [#permalink]  10 Jun 2018, 05:07
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Question Stats:

72% (01:11) correct 27% (00:27) wrong based on 58 sessions
The price of a certain stock rose by 25 percent and then decreased by y percent. After the decrease, the stock was back to its original price.

 Quantity A Quantity B y 25

A)The quantity in Column A is greater.
B)The quantity in Column B is greater.
C)The two quantities are equal.
D)The relationship cannot be determined from the information given.
[Reveal] Spoiler: OA

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Sandy
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Retired Moderator
Joined: 07 Jun 2014
Posts: 4803
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
Followers: 171

Kudos [?]: 2915 [1] , given: 394

Re: The price of a certain stock rose by 25 percent and then [#permalink]  11 Jul 2018, 16:01
1
KUDOS
Expert's post
Explanation

Use a smart number for the price of the stock; for a percent problem, $100 is a good choice. The price of the stock after a 25% increase is (1.25) ×$100 = $125. Next, find the percent decrease (y) needed to reduce the price back to the original$100. Because $125 –$25 = $100, rephrase the question: 25 is what percent of 125? $$25=\frac{x}{100}125$$ $$x=20$$ You have to reduce 125 by 20% in order to get back to$100. Therefore, Quantity A is 20%, so Quantity B is greater.
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Sandy
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Re: The price of a certain stock rose by 25 percent and then [#permalink]  01 May 2020, 04:09
Using 100 as my smart number, 25% increase = $125 To get back to$100, I went this way:
$125*y%=100 y%=100/125 y%=.8$100 is 80% of $125. The price of$125 has to decrease by 20% to get back to \$100.

25 is greater than 20, answer is B.

Another way to get to the same answer, although Sandy's way avoids having to remember to subtract 80 from 100 to get the percent decrease.
Re: The price of a certain stock rose by 25 percent and then   [#permalink] 01 May 2020, 04:09
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