On Monday, the opening price of a certain stock was 100 dollars per share and its closing price...

Question

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?

GMAT Panda · Accepted Answer

An increase of approximately 3% (Answer D) 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 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 - 10/100) C_M = 0.9 C_M 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 + 4/100) C_T = 1.04 C_T 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 = 0.9 110 = 99 C_W = 1.04 99 = 102.96 Percent change = 102.96 - 100/100 100% 2.96%

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

Question

Options:

Steps

Final Answer

Question

Options:

Steps

Final Answer

Related questions