The price value of a share of a company increased at the rate of 15% in the first year.suffered loss of 10% in the next year.and again increased by 20% in the third year.if the present value of share is Rs.2000.what will be its value after three years.

Asked by dsshinge | 17th Nov, 2015, 08:04: PM

Expert Answer:

L e t space u s space a s s u m e space t h a t space t h e space p r e s e n t space v a l u e space o f space t h e space s h a r e space b e space R s.100 I t space i s space i n c r e a s e d space a t space t h e space r a t e space o f space 15 percent sign space i n space t h e space f i r s t space y e a r. T h u s space t h e space v a l u e space o f space t h e space s h a r e space a t space t h e space e n d space o f space f i r s t space y e a r equals 100 plus 100 cross times 15 over 100 equals R s.115 N o w space t h e space v a l u e space o f space t h e space s h a r e space i s space d e c r e a s e d space a t space 10 percent sign space a t space t h e space e n d space o f space t h e space s e c o n d space y e a r. T h u s space t h e space v a l u e space o f space t h e space s h a r e space a t space t h e space e n d space o f space f i r s t space y e a r equals 115 minus 115 cross times 10 over 100 equals R s.103.5 A n d space t h e space v a l u e space o f space t h e space s h a r e space i s space i n c r e a s e d space a t space 20 percent sign space a t space t h e space e n d space o f space t h e space s e c o n d space y e a r. T h u s space t h e space v a l u e space o f space t h e space s h a r e space a t space t h e space e n d space o f space f i r s t space y e a r equals 103.5 plus 103.5 cross times 20 over 100 equals R s.124.2 T h u s comma space i f space R s.100 space i s space t h e space p r e s e n t space v a l u e space o f space t h e space s h a r e comma space t h e space v a l u e space o f space t h e space s h a r e space a f t e r space 3 space y e a r s equals R s.124.2 T h u s comma space i f space R s. R s.2000 space space i s space t h e space p r e s e n t space v a l u e space o f space t h e space s h a r e comma space t h e space v a l u e space o f space t h e space s h a r e space a f t e r space 3 space y e a r s equals fraction numerator 124.2 over denominator 100 end fraction cross times 2000 equals R s.2484 T h u s space t h e space v a l u e space o f space t h e space s h a r e space a f t e r space 3 space y e a r s space i s space R s.2484

Answered by Vimala Ramamurthy | 18th Nov, 2015, 09:48: AM