The price of a certain stock increased by 0.25 of ... | Free GMAT Practice Question | GMAT Panda

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The price of a certain stock increased by 0.25 of 1 percent on a certain day. By what fraction did the price of the stock increase that day?

Explanation	Calculations	Help
$We first multiply 0.25 by 1% to find the percentage increase.$	$0.25 \times 1% = 0.25%$	Theory & Tactics Method Card FDPR4-A Click to view full details
$We next express this percentage as a fraction of 1 by dividing by 100.$	$0.25% = \frac{0.25}{100}$	Theory & Tactics Method Card FDPR4-A Click to view full details
$We then write 0.25 as a fraction and combine it with the division by 100.$	$0.25 = \frac{25}{100} \frac{0.25}{100} = \frac{\frac{25}{100}}{100} = \frac{25}{100} \times \frac{1}{100}$	Theory & Tactics Method Card FDPR1-A Click to view full details
$We simplify the resulting fraction by canceling the common factor.$	$= \frac{25}{25 \times 4 \times 100} = \frac{1}{400}$	Theory & Tactics Method Card FDPR2-A Click to view full details

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The stock price increased by \frac{1}{400}, so the correct answer is Choice B.

The price of a certain stock increased by 0.25 of 1 percent on a certain day. By what fraction did the price of the stock increase that day?

Explanation	Calculations	Help
$We first multiply 0.25 by 1% to find the percentage increase.$	$0.25 \times 1% = 0.25%$	Theory & Tactics Method Card FDPR4-A Click to view full details
$We next express this percentage as a fraction of 1 by dividing by 100.$	$0.25% = \frac{0.25}{100}$	Theory & Tactics Method Card FDPR4-A Click to view full details
$We then write 0.25 as a fraction and combine it with the division by 100.$	$0.25 = \frac{25}{100} \frac{0.25}{100} = \frac{\frac{25}{100}}{100} = \frac{25}{100} \times \frac{1}{100}$	Theory & Tactics Method Card FDPR1-A Click to view full details
$We simplify the resulting fraction by canceling the common factor.$	$= \frac{25}{25 \times 4 \times 100} = \frac{1}{400}$	Theory & Tactics Method Card FDPR2-A Click to view full details

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The stock price increased by \frac{1}{400}, so the correct answer is Choice B.