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 increment on the next day, he holds it for the next day. But the share price further falls down by another 8% of 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?

Question

Question

This question was previously asked in

SSC Selection Post 2024 (Higher Secondary Level) Official Paper (Held On: 21 Jun, 2024 Shift 2)

Answer 1

Given:

Share price decreased by 10% on the first day.

Share price further decreased by 8% on the second day.

Final amount received after selling the shares = ₹12,420.

Formula Used:

Initial Price = Final Price / (1 - Decrease Percentage)

Calculation:

Let the initial price of the shares be ₹P.

After the first day, the price decreased by 10%:

Price after first day = P × (1 - 0.10) = 0.90P

After the second day, the price decreased by 8%:

Price after second day = 0.90P × (1 - 0.08) = 0.90P × 0.92 = 0.828P

Given that the final price after the second day is ₹12,420:

0.828P = 12,420

⇒ P = 12,420 / 0.828

⇒ P = 15,000

Initial Price = ₹15,000

If the person had sold the shares after the first day, the price would have been:

Price after first day = 0.90 × 15,000 = ₹13,500

Amount saved if sold after the first day:

Saving = 13,500 - 12,420

⇒ Saving = ₹1,080

The person could have saved ₹1,080.

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