Don’t lose your progress!

We cover every section of the GMAT with in-depth lessons, 5000+ practice questions and realistic practice tests.

Up to 90+ points GMAT score improvement guarantee

The best guarantee you’ll find

Our Premium and Ultimate plans guarantee up to 90+ points score increase or your money back.

Master each section of the test

Comprehensive GMAT prep

We cover every section of the GMAT with in-depth lessons, 5000+ practice questions and realistic practice tests.

Schedule-free studying

Learn on the go

Study whenever and wherever you want with our iOS and Android mobile apps.

The most effective way to study

Personalized GMAT prep, just for you!

Adaptive learning technology focuses on your academic weaknesses.

Percents: Percent Change

The price of stock decreased by 8% last year and rose by 10% this year. What is the net percentage change in the price of the stock?
Incorrect. [[snippet]]
Correct. [[snippet]] Plug in the initial price of the stock as $100. Based on this, last year's price after an initial 8% decrease can be calculated as follows: >$$\text{Last year's price} = $100 - 8\% \text{ of } 100 = $100 - $8 = $92$$. Now find this year's price after the 10% increase. Remember that the original price is now the new price, which means that the 10% is taken from $92. >$$\text{This year's price} = $92 + 10\% \text{ of } $92 = $92 + $9.2 = $101.2$$ >$$\displaystyle \text{Net percent change} = \frac{101.2 - 100}{100} \times 100 = 1.2%$$ Hence, this is the correct answer.
Incorrect. [[snippet]] Did you subtract the 8% decrease from the 10% increase ($$10\% - 8\% = 2\%$$) and apply a 2% increase to the initial price? Watch out! The 8% decrease is applied to the original price while the 10% increase is applied to last year's price.
Incorrect. [[snippet]]
Incorrect. [[snippet]]