Discussion Forum

A man has income of Rs. 2500 by investing in 15% debentures of face value of Rs. 100 and available for Rs. 104. If the brokerage is 1%, what is his investment?

Answer:

Explanation:

Note: Brokerage is always calculated on Market value.

Investment / (Market value (1 + % brokerage) = (Annual income x 100 ) / (Dividend % x Face value)

Investment / ( 104 ( 1+1 %)) =( 2500 X 100 ) / (15 X 100) => 166.67 X 104 X (101/ 100)= Rs 17507