Example based on approximation `:`
Mukesh purchased shares of FV Rupees 10 when MP was Rupees 125. Brokerage was paid at the rate of 0.23 %. Find the brokerage ( a) with approximation (b) without approximation per share. Hence find the difference in the purchase price of 1000 shares.

Explanation

Approximation
MP of a share = Rupees 125
Brokerage per share
= Rupees `125xx ( 0.23)/( 100)`
`= Rupees 0.2875`
`~~ Rupees 0.29`
Without approxmation
MP of a share = Rupees 125
Brokerage per share
`=Rupees xx ( 0.23)/( 100)`
`= Rupees 0.2875`
Purchase price per share =MP `+` brokerage
`= Rupees 125 + Rupees 0.29`
`= Rupees 125.29`
`:.` purchase price for 1000 shares
= Rupess `125.29 xx 1000`
`= Rupees 125290.00`
Purchase price per share = MP + brokerage
`= Rupees + Rupees 0.2875`
`= Rupees 125.2875`
`:.` purchase price for 1000 shares
`= Rupees 125.2875 xx 1000`
`= Rupees 125287 . 50`
The difference in the purchase price
`= Rupees ( 125290.00 - 125287.50 ) = Rupees 2.50`