Find the cost of Rs. 15000 `(5)1/2%` stock at 99 (brokerage at `1%`)

Options

A. Rs 15000
B. Rs 12500
C. Rs 13000
D. none of these

Answer

To find the cost of Rs. 15000 `(5)1/2%` stock at 99 with a brokerage of 1%, we can follow these steps:

### Step 1: Understand the Given Information
- Face value of the stock = Rs. 15000
- Rate of stock = `(5)1/2%` = 5.5%
- Market price of stock = 99
- Brokerage = 1%

### Step 2: Calculate the Effective Market Price
The effective market price includes the brokerage. Since the market price is given as 99, we need to add the brokerage to find the total cost.

Effective Market Price = Market Price + Brokerage
- Brokerage is calculated as 1% of the market price.

Brokerage = 1% of 99 = (1/100) * 99 = Rs. 0.99

So, the effective market price = 99 + 0.99 = Rs. 99.99

### Step 3: Calculate the Total Cost of the Stock
To find the total cost of the stock, we can use the formula:

Total Cost = (Face Value * Effective Market Price) / 100

Substituting the values we have:

Total Cost = (15000 * 99.99) / 100

### Step 4: Perform the Calculation
Now calculate the total cost:

Total Cost = 15000 * 0.9999 = Rs. 14998.50

### Step 5: Final Answer
The cost of Rs. 15000 `(5)1/2%` stock at 99 with a brokerage of 1% is Rs. 14998.50.

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