A 14 percent stock is sold at Rs 106.25 per Rs 100 nominal share, and brokerage is charged at 3/4 percent on the selling price. What is the net cash realised per Rs 100 nominal share?

Introduction / Context: Many stock market aptitude questions involve brokerage or commission charged on buying or selling shares. This question asks for the net cash realised after selling a 14 percent stock at a certain market price when brokerage is deducted as a percentage of the selling price. The task is to find how much money the seller actually receives per Rs 100 nominal share after paying brokerage. Given Data / Assumptions:

• Type of stock: 14 percent stock (dividend rate is not directly required here)
• Selling price per Rs 100 nominal share = Rs 106.25
• Brokerage rate = 3/4 percent on the selling price
• We must find net cash realised per Rs 100 nominal share after brokerage deduction

Concept / Approach: Brokerage is a fee charged as a percentage of the selling price. Net cash realised equals the selling price minus brokerage. If brokerage rate is b percent and selling price is S, then Net cash = S * (1 - b / 100). Here, b = 0.75 and S = 106.25, so we simply apply this formula. Step-by-Step Solution: Step 1: Selling price per Rs 100 nominal share S = Rs 106.25. Step 2: Brokerage rate b = 3/4 percent = 0.75 percent. Step 3: Brokerage amount per share = S * b / 100 = 106.25 * 0.75 / 100. Step 4: 106.25 * 0.75 / 100 = 106.25 * 0.0075 = 0.796875, which is about Rs 0.80. Step 5: Net cash realised per share = 106.25 - 0.80 = Rs 105.45, which rounds to approximately Rs 105.50. Verification / Alternative check: Instead of working with decimals, observe that 0.75 percent of 100 is 0.75. Since the price is near 100, the brokerage should be slightly more than 0.75, close to 0.8. Subtracting about 0.8 from 106.25 gives around 105.45. Among the options, Rs 105.50 is the closest correct rounded value, confirming our choice. Why Other Options Are Wrong:

• Rs 106.00: This assumes a smaller brokerage or an incorrect percentage calculation.
• Rs 106.50: This is greater than the market price and ignores brokerage deduction.
• Rs 113.75: This value is unrelated to the given data and much higher than the selling price.

Common Pitfalls:

• Forgetting to subtract brokerage from the selling price.
• Applying brokerage on nominal value instead of on the market selling price.
• Misinterpreting 3/4 percent as 4 percent or 3 percent.

Final Answer: The net cash realised per Rs 100 nominal share is approximately Rs 105.50.