Question

Radha invested $₹6030$ in the shares of FV $₹40$ and MV $₹50$. She got a $10\%$ dividend on them and sold the shares at a MV of $₹40$. She paid $0.5\%$ brokerage at each stage of the transactions. The total gain or loss in this transaction was ₹_____.

• A. 480
• B. 774
• C. 1,254
• D. 1,300

Answer 1

The correct option is B 774

Total amount invested $=₹6030$
Market value of a share $=₹50$

Brokerage per share
$=0.5\%$ of $₹50$
$=\frac{0.5}{100}\times 50$
$=₹0.25$

Cost of one share for Radha
$=₹50+₹0.25$
$=₹50.25$

Number of share brought
$=\frac{6030}{50.25}$
$=120$

Selling price of a share
= Market Value - Brokerage
$=40-\frac{0.5}{100}\times 40$
$=₹39.8$

Selling price of 120 shares
$=120\times 39.8$
$=₹4776$

Dividend per share
$=10\%$ of FV
$=10\%$ of $₹40$
$=₹4$

Total dividend received by Radha
= Number of shares $\times$ Dividend per share
$=120\times 4$
$=₹480$

Since Selling price was less than the cost price, Radha suffered loss.
Net loss
$=₹6030-₹4776-₹480$
$=₹774$