A person, while trading the shares of a particular company, observes that its price has gone down by 10% from the previous day. In anticipation of an increment on the next day, he holds it for the next day. But the share price further fell by another 8% from the previous day. Then he sells his shares and gets ₹12,420. How much could he have saved had he sold it the previous day?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. ₹1,080.
Let price 2 days ago = ₹100
After a 10% drop → ₹90
After 8% drop → ₹90 × 0.92 = 82.80
Given: 150 shares (since 12,420 ÷ 82.80 = 150)
If sold at ₹90: 150 × 90 = ₹13,500
Actually sold at 82.80 : 12,420
Loss = 13,500 – 12,420 = ₹1,080