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The price of a share fell by 20% in one week and by a further 25% in the next. By what percent must it now rise to get back to the price it had before the two falls?

Competition practiceRatio, Percentage & Commercial Math
  • A45
  • B66.67
  • C40
  • D60

Step-by-Step Solution

Take the old price as ₹100: it becomes ₹60. To climb from ₹60 back to ₹100 the rise is ₹40 on a base of ₹60 = 66.67%. (Adding the two falls gives 45%, which is not even the total fall — that is 40%. And the fall of 40% is measured on ₹100 while the recovery is measured on ₹60, which is why the two percentages differ.)
Answer: B) 66.67

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