Question

Find the purchase price of a share of FV Rs. 100 if it is at premium of Rs. 30. The brokerage rate is 0.3%.

Answer 1

Here, Face Value of share = Rs. 100, 

premium = Rs.30, brokerage = 0.3% 

MV = FV + Premium 

= 100 + 30 

= Rs.130 

Brokerage = 0.3% of MV 

= (0.3/100) × 130 = Rs.0.39 

Purchase price of a share = MV + Brokerage 

= 130 + 0.39 

= Rs.130.39 

Purchase price of a share is Rs.130.39.