Discussion of Question with ID = 031 under Stocks-and-Shares

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Question

How much cash is realized by selling Rs. 1100 of 14% stock at a discount of 4%? Take the brokerage to be 2%.

A

Rs. 1034.

B

Rs. 1134.

C

Rs. 934.

D

Rs. 1234.

Soln.
Ans: a

If Rs. 100 stock is sold, the amount realized is $(100 - \text"discount" - \text"brokerage")$ = $(100 - 4 - 2)$. So cash realized by selling Rs. 1100 stock is $(100 - 4 - 2)/100$ × 1100 = Rs. 1034.


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