Aryan bought 100 shares of a company at Rs. 50 per share. He paid a brokerage fee of 2% on the purchase. Later, he sold all the shares at Rs. 55 per share and paid a brokerage fee of 2% on the sale. What is Aryan’s net profit percentage on his investment?
To find the net profit percentage, we need to calculate the total investment, the net amount received from the sale, the net profit, and finally, the profit percentage.
This includes the cost of the shares plus the brokerage fee paid on the purchase.
Cost of Shares = 100 shares * ₹50/share = ₹5,000 Brokerage on Purchase = 2% of ₹5,000 = 0.02 * 5000 = ₹100 Total Investment = ₹5,000 + ₹100 = ₹5,100 This is the total sale amount minus the brokerage fee paid on the sale.
Sale Value = 100 shares * ₹55/share = ₹5,500 Brokerage on Sale = 2% of ₹5,500 = 0.02 * 5500 = ₹110 Net Proceeds = ₹5,500 - ₹110 = ₹5,390 This is the difference between the net proceeds from the sale and the total initial investment.
Net Profit = ₹5,390 - ₹5,100 = ₹290 The profit percentage is always calculated based on the total initial investment.
Profit % = (Net Profit / Total Investment) * 100 Profit % = (290 / 5,100) * 100 ≈ 5.69% Final Answer: Aryan’s net profit percentage on his investment is approximately 5.69%.
Reinforce your conceptual grasp with related questions from NIMCET 2024:
Take timed full-length mock tests with authentic question distributions, negative marking (+12/-3 in Math), and instant All India Rank calculation.
Start Free Mock Test Series →