A person invests Rs 4368 and buys certain hundred-rupee shares at 91. He sells out shares worth Rs 2280 when they have risen to 95 and the remainder when they have fallen to 85. Find the gain or loss on the total transaction.
Answer & explanation
Correct answer: option 3
The correct answer is option (3) : Loss ₹48
Total investment = ₹4368
Market price of one share = ₹91
∴ No. of shares = $\frac{₹4368}{₹91}= 48$
No. of shares worth (face value) $₹2400= \frac{₹2400}{₹100}$ $= ₹ 24$
Selling value of these 24 shares at $₹95 =₹95×24$ $=₹2280$
Remaining shares $= 48-24= 24$
He sold remaining shares at ₹85 each
So amount received $= ₹(85×24)$ $=₹2040$
∴ Total money received on selling the shares $= ₹ 2280 + ₹2040$ $= ₹ 4320 $
Loss =$4368-4320=Rs 48$