Question

Smt. Anagha Doshi purchased 22 shares of FV Rs. 100 for a Market Value of Rs. 660. Find the sum invested. After taking $20\%$ dividend, she sold all the shares when the market value was Rs. 650. She paid $0.1\%$ brokerage for each trading done. Find the percent of profit or loss in the share trading.
(Write your answer to the nearest integer)

Answer 1

Hint: To find the amount invested by Anagha, we are going to find the purchase value of the shares. Multiplying the market value of 1 share by 22 shares will give the sum invested. Then to find the profit or loss, we are going to find the total amount invested and the total amount of shares she sold. For that, we are going to find the amount she got while selling the shares which we can calculate by multiplying the FV value by 22. Then find the brokerage value on the shares which she bought and sold. Also, find the dividend amount on the shares she purchased which is calculated by multiplying dividend percent by the number of shares. Profit or loss is the difference between the selling price of shares and the purchased price of the shares.

Complete step-by-step solution:
Anagha purchased 22 shares and the market value of each share is Rs. 650 and the FV of each share is Rs. 100. Also, Anagha sold these shares at the price of Rs. 650.
Now, we are going to find the sum invested by her. This is achieved by multiplying the number of shares (which is 22) by the market value of one share and we get,
$\begin{align}
  & 22\times Rs660 \\
 & =Rs14520 \\
\end{align}$
So the sum invested by her is Rs. 14520.
The brokerage she paid is calculated by multiplying 0.1 with Rs 14520 and then dividing by 100 and we get,
$\begin{align}
  & \dfrac{0.1}{100}\times Rs14520 \\
 & =Rs14.52 \\
\end{align}$
The dividend which she gets out of the shares is calculated by multiplying the divided percentage by number of shares and then dividing this multiplication by 100 we get,
$22\times \dfrac{20}{100}$
Multiplying 100 to the above multiplication we get,
$22\times \dfrac{20}{100}\times 100$
In the above expression, 100 will get canceled out from the numerator and the denominator and we get,
$\begin{align}
  & 22\times \dfrac{20}{100}\times 100 \\
 & =22\times 20 \\
 & =Rs440 \\
\end{align}$
Now, we are going to find the selling price of the shares by multiplying 22 with Rs 650 and we get,
$\begin{align}
  & Rs650\times 22 \\
 & =Rs14300 \\
\end{align}$
The brokerage she paid on this selling price is $0.1\%$ of Rs 14300 so the brokerage is equal to:
$\begin{align}
  & \dfrac{0.1}{100}\times Rs14300 \\
 & =Rs14.3 \\
\end{align}$
The total brokerage paid by her is equal to the sum of the brokerage on the purchase and the brokerage on the selling of the shares.
$\begin{align}
  & Rs14.3+Rs14.52 \\
 & =Rs28.82 \\
\end{align}$
Now, the net income of Smt. Anagha Doshi is calculated by adding the selling price of 22 shares to the dividend received and then subtracting total brokerage from this addition.
$\begin{align}
  & Rs14300+Rs440-Rs28.82 \\
 & =Rs\left( 14300+440-28.82 \right) \\
 & =Rs14711.18 \\
\end{align}$
As you can see that the selling price of the shares is greater than the sum invested so profit happened for Anagha and it is calculated by subtracting Rs 14520 from Rs 14711.18 and we get,
$\begin{align}
  & Rs14711.18-Rs14520 \\
 & =Rs191.18 \\
\end{align}$
Now, profit percentage is calculated by dividing the profit to the sum invested and then multiplying this division with 100 and we get,
$\begin{align}
  & \dfrac{191.18}{14520}\times 100 \\
 & \approx 1\% \\
\end{align}$
Hence, we have got a profit percentage of $1\%$.

Note: The mistake that could be possible in the above problem is the calculation mistake. Also, you must know how to find the brokerage value and the dividend in the shares. Along with that, you should know the formula for the profit and profit percentage. Without these concepts you will get stuck in this problem.