Rishi is a stock trader. He invested in Company A share worth Rs. 13310, as well as in Company B share worth Rs. 7290. If the Company B share appreciates at 10% p.a. and Company A share depreciates at 10% p.a., then in how many years will the value of both be the same?
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Answers
Answer:
for two years it will be same
Given:
Value of Company A's share=Rs.13,310
Value of Company B's share=Rs.7,290
To find:
The number of years after which the value of both the shares will be the same
Solution:
The value of both the shares will be the same after 3 years.
We can find the number of years by following the given process-
We know that the share of company A depreciates at 10% and the share of company B appreciates at 10%.
So, the value of the share of company A will reduce each year and company B's will increase each year.
After 1st year,
The value of the share of company A= 13,310-10% of 13,310
=13,310-1,331=Rs.11,979
The value of the share of company B= 7,290+10% of 7,290
=7,290+729=Rs.8,019
After 2nd year,
The value of the share of company A=11,979-10% of 11,979
=11,979-1,197.9=Rs.10,781.1
The value of the share of company B=8,019+10% of 8,019
=8,019+801.9=Rs.8,820.9
After 3rd year,
The value of the share of company A=10,781.1-10% of 10,781.1
=10,781.1-1,078.11=Rs.9,702.9
The value of the share of company B=8,820.9+10% of 8,820.9
=8,820.9+882.09=Rs.9,702.9
The value of both the shares is equal after 3 years.
Therefore, the value of both the shares will be the same after 3 years.