At the end of the first quarter, the share price of a certain mutual fund was 20 percent higher than it was at the beginning of the year. At the end of the second quarter, the share price was 50 percent higher than it was at the beginning of the year. What was the percent increase in the share price from the end of the first quarter to the end of the second quarter?

Question

Justine Gill

Mathematics

26 August, 23:13

At the end of the first quarter, the share price of a certain mutual fund was 20 percent higher than it was at the beginning of the year. At the end of the second quarter, the share price was 50 percent higher than it was at the beginning of the year. What was the percent increase in the share price from the end of the first quarter to the end of the second quarter?

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Matthew Bartlett · Answer 1

Answer:the percent increase in the share price from the end of the first quarter to the end of the second quarter is 25%

Step-by-step explanation:

Assuming the initial share price of the mutual fund was x ...

At the end of the first quarter, the share price of a certain mutual fund was 20 percent higher than it was at the beginning of the year. This means that the share price of the mutual fund at the first quarter would be

x + (20/100 * x) = x + 0.2x = 1.2x

At the end of the second quarter, the share price was 50 percent higher than it was at the beginning of the year. This means that the share price of the mutual fund at the second quarter would be

x + (50/100 * x) = x + 0.5x = 1.5x

The percent increase in the share price from the end of the first quarter to the end of the second quarter would be

(1.5x - 1.2x) / 1.2x * 100

= 0.3x / 1.2x * 100 = 25%