Stocks and Shares – Quantity to sell for a target net proceeds with brokerage How much nominal stock must be sold to realize Rs. 8190 net if the stock sells at 118 and brokerage on sale is 1%?

Introduction / Context:When selling stock, brokerage is deducted from the proceeds. To meet a target cash requirement, compute the net received per Rs. 100 nominal and scale up the nominal sold accordingly.

Given Data / Assumptions:

• Required net cash = Rs. 8190
• Selling quote = 118 (Rs. 118 per Rs. 100 nominal)
• Brokerage on sale = 1% (assume on the market amount)

Concept / Approach:Net proceeds per Rs. 100 = quoted price − brokerage% of quoted price. Then nominal to sell = (required cash / net per-100) * 100.

Step-by-Step Solution:Brokerage on 118 = 1% * 118 = Rs. 1.18Net per-100 proceeds = 118 − 1.18 = Rs. 116.82Nominal to sell = (8190 / 116.82) * 100 ≈ Rs. 7010.79 nominalRounded to two decimals: Rs. 7010.80 nominal

Verification / Alternative check:Check: (7010.8/100)*116.82 ≈ Rs. 8190, as desired.

Why Other Options Are Wrong:Rs. 7000 and Rs. 7050 are close but do not exactly satisfy the cash goal after brokerage; Rs. 6850 is too low.

Common Pitfalls:Adding brokerage instead of subtracting it on a sale, or calculating brokerage on par rather than on the market proceeds.

Final Answer:Rs. 7010.80 nominal