Question: In January, the stock price went up by 50%. It then dropped by 20% in February, rose again by 25% in March, and declined by 10% in April. If Tk. 200 was invested initially and sold after April, calculate the net percentage change in price.
Solution:
At the end of January,
The value of the stock is = Tk. 200 + 50% of (Tk. 200)
= Tk. 200 + Tk. 100 = Tk. 300.
At the end of February,
The value of the stock is = Tk. 300 - 20% of (Tk. 300)
= Tk. 300 - Tk. 60 = Tk. 240.
At the end of March,
The value of the stock is = Tk. 240 + 25% of (Tk. 240)
= Tk. 240 + Tk. 60 = Tk. 300.
At the end of April,
The value of the stock is = Tk. 300 - 10% of (Tk. 300)
= Tk. 300 - Tk. 30 = Tk. 270.
Now, the percentage change in price is,
= (Change in price/Original price) × 100%
= (270 - 200)/200 × 100%
= (70/200) × 100%
= 35%