Question

A person buys $120$ shares at a nominal value of $₹40$ each, which he sells at $₹42.50$ each. Find his profit and profit percent.

Answer 1

Step1: Calculate the profit

Nominal value of 120 shares

$=₹40\times 120=₹4,800$

Market value of 120 shares
$=₹42.50\times 120=₹5,100$

His profit $=₹5,100-₹4,800=₹300$

Step 2: Calculate profit percent

$\text{Profit percent}=\frac{Profit}{nominalvalue}\times 100$

$=\frac{300}{4800}\times 100$

$=6.25\%$

Hence, the profit earned is $₹300$ and profit percent is $6.25\%$