Answer:
2,484
Step-by-step explanation:
The present price is $2000
In the first year, the share price increases by 15%. To find the new value after the first year, we need to add 15% of $2000 to the present value:
New Value =2000 + 2000 x 15%
= 2000 x 2000 x 15/100
= 2000 + 300
= 2300
This will also be the starting price for the second year
In the second year the share value fell by 10% from 2300. We have to subtract 2300 x 10% from 2300 to get the value at the end of the second year
Value at end of second year (same as value at beginning of third year)
= 2300 - 2300 x 10%
= 2300 x 2300 x 10/100
= 2300 - 230
= 2070
In the third year, share value increased by 20%
Value at end of third year = 2070 + 2070x 20/100
= 2070 + 414
= 2,484
Value at the end of the third year = 2070 (1.20) = 2,484