Question

A person buys 120 shares at a nominal value and Rs 40 each, which he sells at Rs 42.50 each. Find his profit and profit percentage

Answer 1

Dear student
$$\begin{gathered} \mathrm{Number}\mathrm{of}\mathrm{shares}\mathrm{bought}=120 \\ \mathrm{Nominal}\mathrm{value}\mathrm{of}\mathrm{each}\mathrm{share}=\mathrm{Rs}40 \\ \mathrm{So},\mathrm{total}\mathrm{value}\mathrm{of}120\mathrm{shares}=\mathrm{Rs}\left(40\times 120\right)=\mathrm{Rs}4800 \\ \mathrm{Selling}\mathrm{price}\mathrm{of}\mathrm{each}\mathrm{share}=\mathrm{Rs}42.50 \\ \mathrm{Total}\mathrm{selling}\mathrm{price}=\mathrm{Rs}\left(120\times 42.50\right)=\mathrm{Rs}5100 \\ \mathrm{Profit}\mathrm{earned}=\mathrm{Rs}\left(5100-4800\right)=\mathrm{Rs}300 \\ \mathrm{Profit}\%=\frac{\mathrm{Profit}\times 100}{\mathrm{Total}\mathrm{value}}=\frac{300\times 100}{4800}=6.25\% \end{gathered}$$
Regards