Challenge Yourself: Answer This GMAT Practice Question
Monday May 12, 2008
Time for our weekly GMAT challenge. Intergrated Learning has provided us with another great practice GMAT question. See if you can answer it:
GMAT Practice Question
Over a certain two day period, Company A’s stock price increased by 30% the first day and 20% the next day. In the same period, Company B’s stock increased 2% the first day and 50% the next day. If m and n represent the overall two-day percentage increase in Company A and Company B, respectively, which of the following is true:
A) m – n > 4
B) -1 < m – n < 2
C) -1 < n – m < 2
D) n – m < -1
E) n – m > 3
So, what do you think? Is the answer A, B, C, D or E? You can post you guess in the comments (see below) or discuss the question in the Business School Community Forum.
Don't forget to check back tomorrow for the answer!
To see more GMAT challenges, visit the Integrated Learning Blog.
GMAT Practice Question
Over a certain two day period, Company A’s stock price increased by 30% the first day and 20% the next day. In the same period, Company B’s stock increased 2% the first day and 50% the next day. If m and n represent the overall two-day percentage increase in Company A and Company B, respectively, which of the following is true:
A) m – n > 4
B) -1 < m – n < 2
C) -1 < n – m < 2
D) n – m < -1
E) n – m > 3
So, what do you think? Is the answer A, B, C, D or E? You can post you guess in the comments (see below) or discuss the question in the Business School Community Forum.
Don't forget to check back tomorrow for the answer!
To see more GMAT challenges, visit the Integrated Learning Blog.
Comments
The answer is clearly D. I am a sophomore in high school and I can figure it out. Company A’s net stock increase is 56%, while Company B’s is 53%. 53 - 56 = -3, which is
less than -1. (continuation of above post)
The answer is (D)
Yup. There it is. Each increment builds on the hypothetical starting price. m(1.3)(1.2)=1.56 or 56% and so forth.
Answer D:
Lets take a number to calculate numbers:100
m = 156
n 153
n-m