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

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GRE Prep Club Legend
Joined: 07 Jun 2014
Posts: 4857
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:

85% (01:23) correct 14% (00:55) wrong based on 14 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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GRE Prep Club Legend
Joined: 07 Jun 2014
Posts: 4857
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
Followers: 105

Kudos [?]: 1783 [0], given: 397

Re: The price of a certain stock rose by 25 percent and then [#permalink]  11 Jul 2018, 16:01
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.
_________________

Sandy
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Re: The price of a certain stock rose by 25 percent and then   [#permalink] 11 Jul 2018, 16:01
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