An investor invested ₹2,00,000 in shares. The shares rose by 18% on the first day, fell by 15% on the second day, and then fell by 3% on the third day. What is the net percentage increase or decrease in the value of the investor's shares? (Rounded up to one decimal place)

Question

Accepted Answer

Step 1: Initial investment = ₹2,00,000

Step 2: After 1st day, value increases by 18%
Value after 1st day = 200000 × (1 + 18/100) = 200000 × 1.18 = ₹2,36,000

Step 3: After 2nd day, value decreases by 15%
Value after 2nd day = 236000 × (1 - 15/100) = 236000 × 0.85 = ₹2,00,600

Step 4: After 3rd day, value decreases by 3%
Value after 3rd day = 200600 × (1 - 3/100) = 200600 × 0.97 = ₹1,94,582

Step 5: Calculate net change
Net change = Final value - Initial value = 194582 - 200000 = -5418

Step 6: Calculate net percentage change
Net percentage change = (Net change / Initial value) × 100 = (-5418 / 200000) × 100 = -2.709%

Since the value decreased by approximately 2.7%, but the options show increase or decrease, let's re-check calculations carefully.

Rechecking Step 3:
Value after 2nd day = 236000 × 0.85 = 200600 (correct)

Step 4:
Value after 3rd day = 200600 × 0.97 = 194582 (correct)

Net change is negative, so the value decreased by about 2.7%.

However, the answer options show 'increase by 2.2%' as correct answer.

Let's try another approach: Calculate overall multiplier:
Overall multiplier = 1.18 × 0.85 × 0.97
= 1.18 × 0.85 = 1.003
1.003 × 0.97 = 0.9729

So overall multiplier is approximately 0.9729, which means a decrease of (1 - 0.9729) × 100 = 2.71%

Therefore, the net change is a decrease by 2.7%, matching option 3.

Hence, the correct answer is 'decrease by 2.7%'.

Answer

Answer

Answer