KnowledgeBoat Logo
|

Mathematics

₹ 50 shares of a company are bought by John at 20% discount and sold at the gain of 25%.

Assertion (A): The net gain on each share is 5%.

Reason (R): The selling price of each share = 50×80100×125100₹ 50 \times \dfrac{80}{100} \times \dfrac{125}{100}.

  1. A is true, R is false.

  2. A is false, R is true.

  3. Both A and R are true and R is correct reason for A.

  4. Both A and R are true and R is incorrect reason for A.

Shares & Dividends

11 Likes

Answer

A is false, R is true.

Reason

Face value of share = ₹ 50

Discount = 20%

Discounted value = 20% of ₹ 50 = 20100×50\dfrac{20}{100} \times 50 = ₹ 10

Discounted price = ₹ 50 - ₹ 10 = ₹ 40

Gain = 25%

Selling price = ₹ 40 + 25% of ₹ 40

= ₹ 40 + 25100×40\dfrac{25}{100} \times 40 = ₹ (40 + 10) = ₹ 50

Gain = ₹ 50 - ₹ 40 = ₹ 10

Gain % = GainCP×100\dfrac{\text{Gain}}{\text{CP}} \times 100

= 1040×100\dfrac{10}{40} \times 100 = 25%

So, Assertion (A) is false.

As per the Reason (R),

The selling price of each share = 50×80100×125100₹ 50 \times \dfrac{80}{100} \times \dfrac{125}{100}

=(50×0.8×1.25)=50= ₹ (50 \times 0.8 \times 1.25) \\[1em] = ₹ 50

This is equal to the selling price computed above.

So, Reason (R) is true.

Hence, option 2 is correct.

Answered By

3 Likes


Related Questions