Question

a person sells 20% stock of facevalue ₹ 10000 at a premium of 42% . with the money obtained he buys 15 % stock at a discount of 22% . what is the change in his income if the brokerage paid is 2% ? ​

Answer 1

Recall that in purchases of stock:

• Facevalue is what you have own on paper
• Premium will increase the price
• Discount will decrease the price
• Brokerage is an expense

Original stock =  ₹ 10000

He sold 20% of the stock:

$20\% \text { of } 10000 = 0.2 \times 10000$

$20\% \text { of } 10000 = 2000$

Find the amount of stock left:

$\text {Left =} 10000 - 2000$

$\text {Left =} 8000$

Find the earnings from the 20% sold at a premium of 42%:

$\text{earnings = }2000 + 42\% \times 2000$

$\text{earnings = }2000 + 0.42 \times 2000$

$\text{earnings = }2840$

$\text{brokerage} = 2\% \times 2840$

$\text{brokerage} = 0.02 \times 2840$

$\text{brokerage} = 56.80$

$\text{net earnings} =2840 - 56.8$

$\text{net earnings} =2783.20$

Find the amount of money spent on the 15% purchase:

$15 \% \text{ stock } = 15\% \times 8000$

$15 \% \text{ stock } = 0.15 \times 8000$

$15 \% \text{ stock } = 1200$

$\text{ Price of 1200 stock} = 1200 - 22\% \times 1200$

$\text{ Price of 1200 stock} = 1200 - 0.22 \times 1200$

$\text{ Price of 1200 stock} = 936$

$\text{brokerage} = 2\% \times 936$

$\text{brokerage} = 0.02 \times 936$

$\text{brokerage} = 18.72$

$\text{net spending} =936 + 18.72$

$\text{net spending} =954.72$

Find his current position:

$\text{Current Position } = 8000 + 2783.20 + 1200 - 954.72$

$\text{Current Position } = 11028.48$

Find the change in position:

$\text{Change in Position } = 11028.48 - 10000$

$\text{Change in Position } = 1028.48$

Answer: He has a gain of ₹1028.48

Answer 2

Step-by-step explanation:

Given a person sells 20% stock of face value ₹ 10000 at a premium of 42% . with the money obtained he buys 15 % stock at a discount of 22% . what is the change in his income if the brokerage paid is 2% ? ​

• Let the face value be Rs 100
• Therefore Income = 20 / 100 x 10000
•                              = Rs 2000
• Now Market value = Rs 100 + 42
•                              = 142 – 2
•                             = Rs 140
• We know that Number of shares = investments / Face value
•                                                    = 10,000 / 100
•                                                       = 100
• Therefore Sales proceeds will be 140 x 100 = 14,000

• Now market value M.V. = 100 – 22 + 2
•                                       = 78 + 2
•                                      = 80
• Also Number of shares = investments / Face value
•                                     = 14,000 / 80
•                                      = 175
• Now income = 175 x 15 / 100
•                       = Rs 2625

Therefore change of income will be Rs 2625 – Rs 2000 = Rs 625

Reference link will be

https://brainly.in/question/3714241