Question

Mr. Amit Soni purchased 2200 shares of FV ₹100 for a Market Value of ₹200. He got 20% dividend on his investment and then he sold all the shares when the market value was ₹180. Find his overall profit or loss% in the entire transaction.

• A. 2% profit
• B. 4% profit
• C. 2% loss
• D. Neither profit nor loss

Answer 1

The correct option is D Neither profit nor loss

Number of Shares = 2200
MV = ₹200
Total sum invested = 2200 $\times$ 200 = ₹4,40,000
FV = ₹100
Dividend = 20% of ₹100 = ₹20
Dividend on 2200 shares = 2200 $\times$ 20 = ₹44000
SP of Share = 180 $\times$ 2200 = ₹396000
Total amount for which the shares were sold =180 $\times$ 2200 = ₹396000
Total amount he got back = ₹44000 + ₹396000 = ₹4,40,000
Since, the amount invested as well as the amount he received after the sale is the same, therefore there was no profit and no loss in this transaction.