On Monday, the opening price of a certain stock wa... | Free GMAT Practice Question | GMAT Panda

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On Monday, the opening price of a certain stock was 100 dollars per share and its closing price was 110 dollars per share. On Tuesday the closing price of the stock was 10 percent less than its closing price on Monday, and on Wednesday the closing price of the stock was 4 percent greater than its closing price on Tuesday. What was the approximate percent change in the price of the stock from its opening price on Monday to its closing price on Wednesday?

Explanation	Calculations	Help
$We translate "At the opening of a trading day at a certain stock exchange, the price per share of stock K was 8 dollars" and "its closing price was 110 dollars per share" into variables.$	$O_{M} = 100 C_{M} = 110$	Theory & Tactics Method Card TRANS1-A Click to view full details Theory & Tactics Method Card TRANS1-B Click to view full details
$We translate "On Tuesday the closing price of the stock was 10 percent less than its closing price on Monday" using relative percent decrease.$	$C_{T} = (1 - \frac{10}{100}) \times C_{M} = 0.9 \times C_{M}$	Theory & Tactics Method Card TRANS2-D Click to view full details
$We translate "on Wednesday the closing price of the stock was 4 percent greater than its closing price on Tuesday" using relative percent increase.$	$C_{W} = (1 + \frac{4}{100}) \times C_{T} = 1.04 \times C_{T}$	Theory & Tactics Method Card TRANS2-D Click to view full details
$We translate "What was the approximate percent change in the price of the stock from its opening price on Monday to its closing price on Wednesday?" using the percent change formula.$	$C_{T} = 0.9 \times 110 = 99 C_{W} = 1.04 \times 99 = 102.96 Percent change = \frac{102.96 - 100}{100} \times 100% \approx 2.96%$	Theory & Tactics Method Card TRANS2-D Click to view full details

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An increase of approximately 3% (Answer D)

On Monday, the opening price of a certain stock was 100 dollars per share and its closing price was 110 dollars per share. On Tuesday the closing price of the stock was 10 percent less than its closing price on Monday, and on Wednesday the closing price of the stock was 4 percent greater than its closing price on Tuesday. What was the approximate percent change in the price of the stock from its opening price on Monday to its closing price on Wednesday?

Explanation	Calculations	Help
$We translate "At the opening of a trading day at a certain stock exchange, the price per share of stock K was 8 dollars" and "its closing price was 110 dollars per share" into variables.$	$O_{M} = 100 C_{M} = 110$	Theory & Tactics Method Card TRANS1-A Click to view full details Theory & Tactics Method Card TRANS1-B Click to view full details
$We translate "On Tuesday the closing price of the stock was 10 percent less than its closing price on Monday" using relative percent decrease.$	$C_{T} = (1 - \frac{10}{100}) \times C_{M} = 0.9 \times C_{M}$	Theory & Tactics Method Card TRANS2-D Click to view full details
$We translate "on Wednesday the closing price of the stock was 4 percent greater than its closing price on Tuesday" using relative percent increase.$	$C_{W} = (1 + \frac{4}{100}) \times C_{T} = 1.04 \times C_{T}$	Theory & Tactics Method Card TRANS2-D Click to view full details
$We translate "What was the approximate percent change in the price of the stock from its opening price on Monday to its closing price on Wednesday?" using the percent change formula.$	$C_{T} = 0.9 \times 110 = 99 C_{W} = 1.04 \times 99 = 102.96 Percent change = \frac{102.96 - 100}{100} \times 100% \approx 2.96%$	Theory & Tactics Method Card TRANS2-D Click to view full details

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An increase of approximately 3% (Answer D)