Question

11. Manoj purchased 70 shares at MV 125. He sold half of the shares
at MV * 145 and the remaining shares at MV 120. He paid
brokerage at the rate of 0.2% for each transaction. Find whether
he made profit or incurred loss in this transaction. How much?​

Answer 1

Answer:

Step-by-step explanation:

Amount invested while purchasing=no of share× MV

=70×125

=8750

He sold half of share

That is he sold 35 share when MV was 145

Price of 35 share =

35×MV

=35×145=5075

Brokerage on it

=0.2% on 5075

=(0.2÷100)×5075

=10.15

Total amount=

5075+10.15

=5085.15

Again he sold remaining share At MV of 120

Therefore amount received =35×120=4200

Brokerage on it

=0.2%on 4200

=(0.2÷100)×4200

=8.4

Therefore total amount =

4200+8.4

=4208.4

Now total amount on sell

=5085.15+4208.4

=9293.55

Therefore

9293.55>8750

Selling price >cost price

That is profit

He made profit of

9293.55-8750

=543.55

Hence he made profit of

543.55