Word Problem

[grkmurthy]

The price of a stock increased by 10% in June. It declined by 15% in July. The price went up by 20% in August. What is the percentage change in stock price from the beginning of June to end August?

(1) 11.5
(2) 15.0
(3) 12.2
(4) 22.5
(5) 12.5

[enigma]

If the price initially was 100, then after increase in june the price would have been 110.

Then a 15% decline in July 110 - 15% of 110 = 93.5

Then a 20% increase in August = 93.5 + 20% of 93.5 = 112.2

so a 12.2% increase.