Question

Shri. Aditya Sanghavi invested Rs.50,118 in shares of FV Rs.100, when the market value is Rs. 50. Rate of brokerage is 0.2% and Rate of GST on brokerage is 18%, then How many shares were purchased for Rs. 50,118?

Answer 1

Here, FV = Rs.100, MV = Rs.50 

Purchase value of shares = Rs.50118, 

Rate of brokerage = 0.2%, Rate of GST = 18% 

Brokerage = 0.2% of MV

= (0.2/100) x 50

Brokerge = Rs. 0.1

GST = 18% of brokerage

= (18/100) x 0.1

= Rs. 0.018

Purchage value of a share 

= MV + Brolerage + GST

= 50 + 0.1 + 0.018

∴ Number of shares = (purchage value of all shares) / (purchase value of one share)

=  50118/50.118

= 1000

∴ 1000 shares were purchased for Rs. 50,118.