The cost price of a ₹ 100 stock at 4 discount, when brokerage is $\frac{1}{4}$% is

### Concept & Stock Pricing When buying a stock, the cost price includes the market value of the stock plus any brokerage fees. A stock at a discount means its market value is below its face value. $$ \text{Cost Price} = (\text{Face Value} - \text{Discount}) + \text{Brokerage} $$ ### Step-by-Step Solution * **Given:** Face Value = ₹ 100, Discount = ₹ 4, Brokerage = $\frac{1}{4}$% of Face Value. * **Step 1: Calculate Market Value.** Market Value = Face Value - Discount = $100 - 4 = 96$. * **Step 2: Calculate Brokerage.** Brokerage is generally calculated on the face value unless stated otherwise. Brokerage = $\frac{1}{4}$% of ₹ 100 = ₹ 0.25. * **Step 3: Calculate Total Cost Price.** Cost Price = Market Value + Brokerage = $96 + 0.25 = 96.25$. ### Exam Strategy & Shortcut Understand that "discount" reduces the price you pay, while "brokerage" is a fee added to your cost. Simply subtract the discount from 100 and add the brokerage decimal to find the answer mentally in seconds. ### Common Pitfall Subtracting the brokerage instead of adding it. Remember, when you are the buyer, brokerage is an additional expense that increases your cost price. ### Final Answer Therefore, the correct answer is **₹ 96.25**.