GMAT Quantitative Reasoning Practice Test 2

Question : 85 of 100

Marks: +1, -0

The value of a “Tin-Rin” stock in the stock market decreased by 15% in the last two years.
The economic experts believe that the value of the stock will increase by 7% during the following year, which will make the value

\$440

. What was the approximate price of the stock two years ago?

$\$ 473$
$\$ 464$
$\$ 455$
$\$ 445$
$\$ 430$

Validate

Solution:

Start from the top, after a

7 \%

increase the price of the stock is

\$ 440

.
440 are

107 \%

of the price this year

(440 \/ 107 × 100=411.215)

.
Two years ago the price was

15 \%

higher, therefore

411.215 × 1.15

is approximately

\$ 473

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