A stock decreases in value by 20%. By what percentage must the stock price increase to reach its former value?

A 15%
B 20%
C 25%
D 30%

Correct Answer: 25%

Let the initial value be A. Decreased value = A - 20% of A = A - 0.2A = 0.8A Increment required to reach initial value = (A - 0.8A)/(0.8A)×100% = 25%
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