Question

Shri. Aditya Sanghavi invested Rs 50,118 in shares of FV Rs 100, when the market value is Rs 50. Rate of brokerage is 0.2% and Rate of GST on brokerage is 18%, then How many shares were purchased for Rs 50,118 ?

Answer 1

Sum invested = Rs 50,118

Face value of each share = Rs 100

Market value of each share = Rs 50

Brokerage = 0.2%

Brokerage per share = 0.2% of Rs 50 = $\frac{0.2}{100}\times 50$ = Rs 0.1

GST per share on brokerage = 18% of Rs 0.1 = $\frac{18}{100}\times 0.1$ = Rs 0.018

Cost of 1 share = Market value of each share + Brokerage per share + GST per share on brokerage = Rs 50 + Rs 0.1 + Rs 0.018 = Rs 50.118

∴ Number of shares purchased = $\frac{\mathrm{Sum}\mathrm{invested}}{\mathrm{Cost}\mathrm{of}\mathrm{each}\mathrm{share}}=\frac{50118}{50.118}$ = 1000

Thus, the number of shares purchased is 1000.