Stocks and Shares – Total amount payable with brokerage How much must be paid to buy Rs. 1365 nominal stock quoted at 104, if brokerage is 1% on the purchase?

Introduction / Context:Here we convert a quoted price into the effective price per Rs. 100 nominal after including brokerage. We then scale this cost up by the total nominal sum to find the total cash required.

Given Data / Assumptions:

• Nominal (face value) to be purchased = Rs. 1365
• Quote = 104, i.e., Rs. 104 per Rs. 100 nominal
• Brokerage = 1% on the purchase (assumed on the market amount)

Concept / Approach:Effective price per Rs. 100 nominal = market quote + brokerage on that quote. Multiply this by (nominal/100) to get the total payable.

Step-by-Step Solution:Effective per-100 cost = 104 + 1% of 104 = 104 + 1.04 = Rs. 105.04Total payable = (1365/100) * 105.04 = 13.65 * 105.04 = Rs. 1433.796 ≈ Rs. 1433.80

Verification / Alternative check:Compute 1365 at 104% = Rs. 1419.60; add 1% brokerage on that amount (Rs. 14.196) to get Rs. 1433.796, the same result.

Why Other Options Are Wrong:Rs. 1433.50 and Rs. 1433.25 understate the brokerage-inclusive amount; Rs. 1344.25 ignores part of the premium; “None” is unnecessary because Rs. 1433.80 matches.

Common Pitfalls:Applying brokerage on par instead of on the market amount; or forgetting brokerage entirely.

Final Answer:Rs. 1433.80