Question

Smt. Anagha Doshi purchased 22 shares of FV ₹ 100 for Market Value of ₹ 660. Find the sum invested. After taking 20% dividend, she sold all the shares when market value was ₹ 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

For purchasing shares:

Face value of each share = ₹ 100
Market value of each share = ₹ 660
Number of shares purchased = 22
Rate of brokerage = 0.1%

Sum invested = Market value of each share × Number of shares

= 660 × 22

= ₹ 14,520

Brokerage = 0.1% of sum invested

= ${\displaystyle \frac{0.1}{100}\times 14520}$

= ₹ 14.52

∴ Amount invested for 22 shares = Sum invested + Brokerage

= 14520 + 14.52

= ₹ 14534.52

For dividend:

Rate of dividend = 20%

∴ Total dividend received = Number of shares purchased × Dividend received on each share 

${\displaystyle =22\times \frac{20}{100}\times 100}$

= ₹ 440

For selling shares:

Market value = ₹ 650, Rate of brokerage = 0.1%

Market value of 22 shares = 22 × 650 = ₹ 14,300

Brokerage = 0.1% of 14300

${\displaystyle =\frac{0.1}{100}\times 14300}$

= ₹ 14.30

Smt. Anagha income = Dividend + Market value of 22 shares − Brokerage

= 440 + 14300 − 14.30

= ₹ 14725.7

Since, income > Amount invested

∴ Profit is gained.

∴ Profit = Income − Amount invested

= 14725.7 − 14534.52 

= ₹ 191.18

Profit Percentage = ${\displaystyle \frac{\text{Profit}}{\text{Amount invested}}\times 100}$

${\displaystyle =\frac{191.18}{14534.52}\times 100}$

= 1.31%

∴ Percentage of profit in the share trading is 1% (nearest integer).