Discussion of Question with ID = 071 under Stocks-and-Shares

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Question

How much cash is realized by selling Rs. 1200 of 10% stock at a discount of 4%? Take the brokerage to be 2%.

A

Rs. 1128.

B

Rs. 1228.

C

Rs. 1028.

D

Rs. 1328.

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. 1200 stock is $(100 - 4 - 2)/100$ × 1200 = Rs. 1128.

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