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 ₹1,000, then what is the final value of the investment after 2 years?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹1,040.
Given that
The price of a stock increased by 30% in the first year and decreased by 20% in the second year
An investor bought 100 shares of the stock for ₹1,000
According to the question
After 2 years, the final value of the investment = 1000 × (130/100) × (80/100) = ₹1040