The number of shares of market value ₹110 each that can be purchased for ₹2,24,00, if the brokerage paid is 2% are :
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 2000
Market value per share = Rs. 110
Brokerage = 2%
Total amount available = Rs. 2,24,000
Effective Price share = $110 + (2\%\text{ of}\, 110)$
$= 110 + 2.20 = 112.20$
$\text{Number of shares} = \frac{\text{Total Amount Available}}{\text{Effective Price per share}}$
$=\frac{2,24,000}{112.20}≃1997$ shares