How much `(4)1/2%` stock at 95 can be puchased by investing rs 1905 (beokerage `1/4%`)

Options

A. Rs 2000
B. Rs 2500
C. Rs 2200
D. Rs 2350

Answer

To solve the problem of how much `(4)1/2%` stock at 95 can be purchased by investing Rs 1905 with a brokerage of `1/4%`, we can follow these steps:

### Step 1: Understand the given values
- Investment amount = Rs 1905
- Market price of stock = 95
- Brokerage = `1/4%` = 0.25%

### Step 2: Calculate the total cost of purchasing the stock including brokerage
The total cost of purchasing the stock will include the market price of the stock plus the brokerage fee.

The brokerage fee can be calculated as:
\[ \text{Brokerage} = \frac{1}{4} \% \text{ of Market Price} = \frac{0.25}{100} \times 95 \]

Calculating the brokerage:
\[ \text{Brokerage} = \frac{0.25 \times 95}{100} = \frac{23.75}{100} = 0.2375 \]

Now, the effective market value including brokerage is:
\[ \text{Effective Market Value} = \text{Market Price} + \text{Brokerage} = 95 + 0.2375 = 95.2375 \]

### Step 3: Calculate the number of stocks that can be purchased
The number of stocks that can be purchased is given by the formula:
\[ \text{Number of Stocks} = \frac{\text{Investment Amount}}{\text{Effective Market Value}} \times 100 \]

Substituting the values:
\[ \text{Number of Stocks} = \frac{1905}{95.2375} \times 100 \]

Calculating the number of stocks:
\[ \text{Number of Stocks} = \frac{1905}{95.2375} \approx 20 \]

### Final Answer:
The number of `(4)1/2%` stocks that can be purchased is approximately **20 stocks**.

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