The price value of the share of a company increased at the rate of 20% in a year and decreased at the rate of 10% in the next year. If the present value of the share is Rs. 1000, then what will be its value after 2 years ?

Explanation

Let P= Rs. 1000
Rate of increase, `R_(1)=20%`
Rate of decrease, `R_(2)=10%`
`therefore " Changed value " A=P(1+(R_(1))/(100))(1+(R_(2))/(100))`
`=1000(1+(20)/(100))(1-(10)/(100))`
`=1000xx(6)/(5)xx(9)/(10)=Rs. 1080`.