Question

Smt. Mita Agrawal invested Rs 10,200 when MV of the share is Rs 100. She sold 60 shares when the MV was Rs 125 and sold remaining shares when the MV wasRs 90. She paid 0.1% brokerage for each trading. Find whether she made profit or loss ? and how much?

Answer 1

Amount invested = Rs 10,200

Market value of each share = Rs 100

∴ Number of shares purchased = $\frac{\mathrm{Amount}\mathrm{invested}}{\mathrm{Market}\mathrm{value}\mathrm{of}\mathrm{each}\mathrm{share}}=\frac{10200}{100}$ = 102

Brokerage paid for purchasing the shares = 0.1% of Rs 10,200 = $\frac{0.1}{100}\times 10200$ = Rs 10.20

Selling price of 60 shares = MV of each share × Number of shares = Rs 125 × 60 = Rs 7,500

Number of remaining shares = 102 − 60 = 42

Selling price of 42 shares = MV of each share × Number of shares = Rs 90 × 42 = Rs 3,780

Total money received on selling 102 shares = Rs 7,500 + Rs 3,780 = Rs 11,280

Total brokerage paid on selling the shares = 0.1% of Rs 11,280 = $\frac{0.1}{100}\times 11280$ = Rs 11.28

Net income of Smt. Mita Agarwal = Total money received on selling 102 shares − Total brokerage paid on 3 trades

= Rs 11,280 − (Rs 10.20 + Rs 11.28)

= Rs 11,258.52

Since net income of Smt. Mita Agarwal is more than the amount invested, so Smt. Mita Agarwal made profit.

Profit made = Amount invested − Net income = Rs 11,258.52 − Rs 10,200 = Rs 1,058.52

Thus, Smt. Mita Agarwal made profit of Rs 1,058.52.