Question

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

Answer 1

Amount invested = ₹ 10,200

The Market value of each share = ₹ 100

∴ Number of shares purchased = \[\frac{\text{ Amount invested} }{\text{ Market value of each share} } = \frac{10200}{100}\]  = 102

Brokerage paid for purchasing the shares = 0.1% of ₹ 10,200 =  \[\frac{0 . 1}{100} \times 10,200\]  = ₹ 10.20

Selling price of 60 shares = MV of each share × Number of shares

= ₹ 125 × 60

= ₹ 7,500

Number of remaining shares = 102 − 60 = 42

Selling price of 42 shares = MV of each share × Number of shares

= ₹ 90 × 42

= ₹ 3,780

Total money received on selling 102 shares

= ₹ 7,500 + ₹ 3,780

= ₹ 11,280

Total brokerage paid on selling the shares = 0.1% of ₹ 11,280 = \[\frac{0.1}{100} \times 11,280\]   = ₹ 11.28

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

= ₹ 11,280 − (₹ 10.20 + ₹ 11.28)

= ₹ 11,258.52

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

Profit made = Amount invested − Net income

= ₹ 11,258.52 − ₹ 10,200

= ₹ 1,058.52

Thus, Smt. Mita Agarwal made a profit of ₹ 1,058.52.