Question

A stock was priced at $12 3/8 per share. It rose in price by $3 1/4 per share. What was its new price?

Answer 1

Option A

The new price is $ $15 \frac{5}{8}$

Solution:

Given that, a stock was priced at $ $12 \frac{3}{8}$ per share.

It rose in price by $ $3 \frac{1}{4}$ per share.

New price = old price + rise in price

Thus to find out the new price, we have to add old price and rise in price

$\text { So, new price }=\ 12 \frac{3}{8}+\ 3 \frac{1}{4}$

$\text { New price }=\frac{12 \times 8+3}{8}+\frac{3 \times 4+1}{4}$

On solving we get,

$\text { New price }=\frac{96+3}{8}+\frac{12+1}{4}$

$\begin{array}{l}{\text { New price }=\frac{99}{8}+\frac{13}{4}=\frac{99+26}{8}} \\\\ {\text { New price }=\frac{125}{8}}\end{array}$

On converting to mixed fraction,

$\begin{array}{l}{\text { New price }=\frac{120+5}{8}} \\\\ {\text { New price }=15 \frac{5}{8}}\end{array}$

Hence, the new price is $15 \frac{5}{8}$, so option A is correct.