Stock Price

Algebra Level 2

A stock price rose $20 and is now $100. What was the percent increase?

400 % 400\% 25 % 25\% 17 % 17\% 20 % 20\%

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3 solutions

Andrew Ellinor
Dec 25, 2015

Initially, the stock price is 80. 80. If the price goes up by x%, then this means the new price is 80 x . 80x. We set up the following equation and solve: 80 x = 100 x = 1.25. 80x = 100 \longrightarrow x = 1.25.

The multiplicative factor of 1.25 means the price increase is 25%.

The stock price was 20 initially in the track, no 80. so the percent is 400%.

Umberto Pezzella - 5 years, 5 months ago

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The question states that the stock price rose $20 and became $100. That means that the original price was $80 as $100 - $20 = $80. Then use the formula % Δ = x 1 x 0 x 0 × 100 % \%\Delta = \frac {x_1 - x_0}{x_0} \times 100\% . You would get % Δ = 100 80 80 × 100 % \%\Delta = \frac {100 - 80}{80} \times 100\% = 20 80 × 100 % \frac {20}{80} \times 100\% = 1 4 × 100 % \frac {1}{4} \times 100\% = 25 100 × 100 % \frac {25}{100} \times 100\% = 25 % 25\% .

Ananth Jayadev - 5 years, 5 months ago

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I am sorry to replay but the question is "A stock price rose $20 and is now $100. What was the percent increase?" There is written "price" not "rise". So someone understands that the initial price is 20. However the question is very easy, it depends only by initial point that you consider.

Umberto Pezzella - 5 years, 5 months ago
Zarin Tasnim
Dec 25, 2015

It's simple, my number went up to $100 by $20, so the original price is $80. 80/20=0.25, i.e. 25% increase :)

80/20= 4 not 0.25

Anubhav Rastogi - 5 years, 5 months ago

Should have been 20 / 80 = 25 % 20/80=25\% .

Henk Elemans - 5 years, 5 months ago

Yeah oops thanks

Zarin Tasnim - 5 years, 5 months ago
Ric Best
Jan 9, 2016

What if the stock just reverse split?

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