Question

Mr. Purushottam invested Rs. 1,20,354 in shares of face value Rs. 100 each at Rs. 120 market value. He gave brokerage of 0.25% and GST of 18% on brokerage then how many shares are purchased by him?

Answer 1

Given:

Total amount invested = Rs. 1,20,354.

Market value (MV) per share = Rs. 120.

Brokerage = 0.25% on purchase.

GST on brokerage = 18%.

Step-wise calculation:

1. Brokerage per share = 0.25% of 120

= 120 × 0.0025

= Rs. 0.30

2. GST on brokerage per share = 18% of 0.30

= 0.30 × 0.18

= Rs. 0.054

3. Total cost per share = MV + brokerage + GST

= 120 + 0.30 + 0.054

= Rs. 120.354

4. Number of shares = `"Total investment"/"Cost per share"` 

= 1,20,354 ÷ 120.354

= 1,000

Mr. Purushottam purchased 1,000 shares.