Question 162

Harshad bought shares of a company on a certain day, and sold them the next day. While buying and selling he had to pay to the broker one percent of the transaction value of the shares as brokerage. What was the profit earned by him per rupee spent on buying the shares?

A.The sales price per share was 1.05 times that of its purchase price.
B. The number of shares purchased was 100.


Let the purchase price be P and sale price be S. So total brokerage = 0.01P + 0.01S. 

If we consider statement A we have S = 1.05*P.

Hence we can find brokerage value in terms of P.

then total profit = S - brokerage = Constant * P.

Then profit per rupee would be dividing last equation by P

Hence statement A is sufficient.

Using statement B we cant make out the profit percentage.

Hence , option A. 

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