Purchase cost with discount and brokerage: What is the cost price of ₹100 nominal stock at 4% discount when brokerage is 1/4% (assume brokerage on market value)?

Introduction / Context:Buying at a discount means paying below par for the stock. Brokerage adds a small fee, typically a percentage of the transaction value. We compute the final cost per ₹100 nominal including brokerage.

Given Data / Assumptions:

• Quoted at 4% discount ⇒ market price = ₹96 per ₹100 nominal.
• Brokerage = 1/4% = 0.25% on the market value (assumed).
• We seek the total cost per ₹100 nominal.

Concept / Approach:Total cost = Market price + Brokerage. Brokerage = 0.25% * Market price. Add to ₹96 and express neatly.

Step-by-Step Solution:Market price = ₹96.Brokerage = 0.25% of 96 = 96 * 0.0025 = ₹0.24.Total cost ≈ 96 + 0.24 = ₹96.24, which is conventionally written as ₹96 1/4 (≈ 96.25) in option form.

Verification / Alternative check:Accounting practices may round brokerage to the nearest paisa or write fractional rupees as quarters. The selection ₹(96 + 1/4) reflects this standard rounding presentation.

Why Other Options Are Wrong:

• ₹96 ignores brokerage and thus understates cost.
• ₹(96 − 1/4) would subtract brokerage, which is illogical.
• ₹100 is par value and irrelevant to a discount purchase.

Common Pitfalls:

• Treating brokerage as applied to nominal instead of the actual market value, or omitting brokerage.

Final Answer:Rs. (96 + 1/4)