If a stock price increases from $50 to $62.50, what is the percent increase?

Question

A
25%
B
30%
C
20%
D
35%

Answer 1

To calculate the percent increase, you can use the formula:

\[ \text{Percent Increase} = \left( \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \right) \times 100 \]

In this case, the old price is $50 and the new price is $62.50.

1. Calculate the change in price: \[ \text{Change} = 62.50 - 50 = 12.50 \]

2. Divide the change by the old price: \[ \frac{\text{Change}}{\text{Old Price}} = \frac{12.50}{50} = 0.25 \]

3. Convert to a percentage: \[ 0.25 \times 100 = 25% \]

Thus, the percent increase is 25%.

The answer is A.