How many shares of market value ₹ 25 each can be purchased for ₹ 12750, brokerage being 2%?

### Concept & Purchasing Shares To find the number of shares purchased, you must divide the total investment by the true cost of a single share. The cost of a single share is its market value plus the brokerage fee. $$ \text{Number of Shares} = \frac{\text{Total Investment}}{\text{Market Value} + \text{Brokerage}} $$ ### Step-by-Step Solution * **Given:** Total Investment = ₹ 12750, Market Value = ₹ 25, Brokerage = 2%. * **Step 1: Calculate Brokerage per share.** Here, brokerage is taken on the market value. Brokerage = 2% of ₹ 25 = $0.02 \times 25 = 0.50$. * **Step 2: Calculate Cost Price per share.** Cost per share = Market Value + Brokerage = $25 + 0.50 = 25.50$. * **Step 3: Calculate Number of Shares.** Number of Shares = $\frac{12750}{25.50}$. To simplify, multiply numerator and denominator by 2: $\frac{25500}{51} = 500$. ### Exam Strategy & Shortcut Instead of dividing by a decimal, use fractions. $25.50 = \frac{51}{2}$. So, $12750 \div \frac{51}{2} = \frac{12750 \times 2}{51}$. Since $1275 \div 51 = 25$, the calculation simplifies to $250 \times 2 = 500$. ### Common Pitfall Ignoring the brokerage fee and dividing the total investment directly by the market value (12750 / 25 = 510), which is incorrect as it fails to account for purchase fees. ### Final Answer Therefore, the correct answer is **500**.