The cash required to purchase ₹15,500 of 8.5% stock at 105, brokerage being ₹2 is :
Answer & explanation
Correct answer: option 3
The correct answer is Option (4) → ₹16,585
Total cost per ₹100 = Market Price + Brokerage
$=105+2=107$
Total cost for ₹15,500 nominal value
Total cost = $\frac{Nominal\, value}{100}×Total\,cost\,per\,₹100$
Total cost = $\left(\frac{15500}{100}\right)×107=155×107$
$=16,585$