ACT Math · Ratios, rates, and percents

A stock price rose from 40 to 52. What was the percent increase?

A stock price rose from $40 to $52. What was the percent increase?

Answer and explanation

Answer: H: 30%

Percent increase is the change divided by the original value: 52−4040=1240=0.30\frac{52-40}{40}=\frac{12}{40}=0.30, or 30%30\%, choice H. Choice F (12%12\%) reports the change in dollars as a percent. Choice G (23%23\%) divides the change by the new value, 1252\frac{12}{52}, but a percent increase is measured against the original. Choice J (130%130\%) is the new price as a percent of the old price, 5240\frac{52}{40}, and does not subtract the original 100%100\%. Check: 30%30\% of $40 is $12, and 40+12=5240+12=52.

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