Question

a) A person buys 120 shares at a nominal value of Rs 40 each, which he sells out at Rs 45 each. Find his profit and profit percent.

b) Ranna buys Rs 100 shares of a company at Rs 90 and sells them when the price becomes Rs 30 below par. Find his loss if he invested Rs 4,050.

[6 MARKS]

Answer 1

Each subpart: 3 Marks each

a) Gain in 1 share = Rs (45 - 40) = Rs 5
Gain in 120 shares = Rs 120 $\times$ 5 = Rs 600
$\therefore Gain\%=\frac{600}{120\times 40}\times 100=12.5\%$

b)
No. of shares bought = Rs 4050 $÷$ 90 = 45
S.P. of 1 share = Rs (100 - 30) = Rs 70
S.P. of 45 shares = 70 $\times$ 45 = Rs 3,150
C.P. of 45 shares = Rs 4,050
Loss = Rs (4,050 - 3,150) = Rs 900