Question : The price of a stock increased by 30% in the first year and decreased by 20% in the second year. If an investor bought 100 shares of the stock for INR 1,000, then what is the final value of the investment after 2 years?
Option 1: INR 960
Option 2: INR 1,040
Option 3: INR 1,400
Option 4: INR 1,020
Correct Answer: INR 1,040
Solution :
Price of 100 stocks = INR 1000
Price after 1 year with an increment of 30% = $1000\times\frac{130}{100}$
= 1300
Price after 2 years with a decrement of 20% = $1300\times\frac{80}{100}$
= 1040
Hence, the correct answer is INR 1040.
Related Questions
Know More about
Staff Selection Commission Sub Inspector ...
Application | Eligibility | Selection Process | Result | Cutoff | Admit Card | Preparation Tips
Get Updates BrochureYour Staff Selection Commission Sub Inspector Exam brochure has been successfully mailed to your registered email id “”.