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?
- A₹1,080
- B₹1,220
- C₹1,140
- D₹1,260
Solution & Step-by-step Explanation
Let the price on the initial day be x.
On the next day (previous day to the sale), the price went down by 10%:
Price on previous day=0.90x
On the final day, the price further falls down by another 8% of the previous day's price:
Final selling price=0.90x×(1−0.08)=0.90x×0.92=0.828x
Given that the selling price is ₹12,420:
0.828x=12420
x=
0.828
12420
=15000
Price on the previous day:
Previous day price=0.90×15000=₹13,500
Amount he could have saved if he had sold it on the previous day:
Savings=Previous day price−Selling price
Savings=13500−12420=₹1,080
On the next day (previous day to the sale), the price went down by 10%:
Price on previous day=0.90x
On the final day, the price further falls down by another 8% of the previous day's price:
Final selling price=0.90x×(1−0.08)=0.90x×0.92=0.828x
Given that the selling price is ₹12,420:
0.828x=12420
x=
0.828
12420
=15000
Price on the previous day:
Previous day price=0.90×15000=₹13,500
Amount he could have saved if he had sold it on the previous day:
Savings=Previous day price−Selling price
Savings=13500−12420=₹1,080