Question

Smt. Anagha Doshi purchased 22 shares of FV Rs 100 for Market Value of Rs 660. Find the sum invested. After taking 20% dividend, she sold all the shares when market value was Rs 650. She paid 0.1% brokerage for each trading done. Find the percent of profit or loss in the share trading.
(Write your answer to the nearest integer).

Answer 1

Face value of each share = Rs 100

Market value of each share = Rs 660

Number of shares purchased = 22

∴ Amount invested = Market value of each share × Number of shares purchased = Rs 660 × 22 = Rs 14,520

Brokerage paid on purchasing the shares = 0.1% of Rs 14,520 = $\frac{0.1}{100}\times 14520$ = Rs 14.52

Total dividend received = Number of shares purchased × Dividend received on each share = 22 × $\frac{20}{100}\times 100$ = Rs 440

Selling price of each share = Rs 650

∴ Selling price of 22 shares = Rs 650 × 22 = Rs 14,300

Brokerage paid on selling the shares = 0.1% of Rs 14,300 = $\frac{0.1}{100}\times 14300$ = Rs 14.30

∴ Total brokerage paid = Brokerage paid on purchasing the shares + Brokerage paid on selling the shares = Rs 14.52 + Rs 14.30 = Rs 28.82

Net income of Smt. Anagha Doshi = Total money received on selling 22 shares + Total dividend received − Total brokerage paid

= Rs 14,300 + Rs 440 − Rs 28.82

= Rs 14,711.18

Since net income of Smt. Anagha Doshi is more than the amount invested, so Smt. Anagha Doshi had profit.

Profit = Net income of Smt. Anagha Doshi − Amount invested = Rs 14,711.18 − Rs 14,520 = Rs 191.18

∴ Profit% = $\frac{\mathrm{Profit}}{\mathrm{Amount}\mathrm{invested}}\times 100\%=\frac{191.18}{14520}\times 100\%$ ≈ 1% (answer to the nearest integer)

Thus, the profit percent in the share trading is 1% (answer to the nearest integer).