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During the year 1995 the price of ABC Co...

During the year 1995 the price of ABC Company stock increased by 125% and during the year 1996 the price of stock increased by 80% . Over the period from January 1 , 1995 , through December 31 , 1996 by what percentage did the price of ABC Company stock rise ?

A

103

B

205

C

305

D

405

Text Solution

Verified by Experts

The correct Answer is:
C
Let the starting price of the stock be $100 . During the first year a 125% increase means a $125 increase to $225 . During the second year an 80% increase of the $225 stock price means a $180 increase to $405 . Thus , over the 2-year period the price increased $305 from the original $100 starting price . Therefore , the price increased 305% .
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