Question

(2) Rohit purchased 300 shares of face value Rs. 10 at Rs. 5 premium. He had to pay 0.5% brokerage. How much total amount did he spend ?​

Answer 1

Rohit purchased 300 shares of face value Rs. 10 at Rs. 5 premium. He had to pay 0.5% brokerage. How much total amount did he spend ?

Answer 2

Step-by-step explanation:

Solution :

Total no. of shares purchased = 300

Face value = Rs. 10

At Rs. 5 premium

Brokerage rate = 0.5%

Total amount spend by Rohit = ???

• MV = FV + Premium

$\longrightarrow$ 10 + 5

$\longrightarrow$ 15

MV = Rs. 15

Total amount of purchase = Total shares × MV of 1 share

$\longrightarrow$300 × 15

$\longrightarrow$4,500

Total amount of purchase =

Rs. 4,500

• Brokerage of the transaction = 0.5%

$\longrightarrow$4,500 × 0.5/ 100

$\longrightarrow$22.5

Brokerage of the transaction = 22.5

Total amount spend = Total amount of purchase + Brokerage

$\longrightarrow$4,500 + 22.5

$\longrightarrow$4,522.5

Total amount spend = Rs. 4,522.5

∴ Total amount spend by Rohit = Rs. 4,522.5