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Question 29 : A brokerage firm charges 0.1 percent trading commission on the value of shares bought or sold through its trading platform. If an investor bought 1000 shares of Britannia on Tuesday, and sold all of them on Thursday, then the total brokerage fee that will be charged from the investor is

  1. 6,125
  2. 6,126
  3. 6,127
  4. 6,128

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Explanatory Answer

Day Monday Tuesday Wednesday Thursday Friday
Quote Sell Buy Sell Buy Sell Buy Sell Buy Sell Buy
Dabur 460 462 455 458 432 433 444 447 461 462
Marico 345 346 335 336 365 368 372 375 372 374
HUL 1931 1933 1952 1955 1979 1981 2044 2048 1966 1969
ITC 237 238 238 239 246 251 221 225 253 256
Britannia 3044 3046 3100 3101 3110 3115 3025 3027 3140 3144
Total amount spent = 1000 × 3101 = Rs. 31,01,000
0.1% of amount spent = Rs. 3,101

Total amount earned by selling the stock = 1000 × 3025 = Rs. 30,25,000
0.1% of amount earned = Rs. 3025

Total brokerage fee = 3101 + 3025 = Rs. 6,126

The answer is 6,126

Choice B is the correct answer.

 

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