CAT 2000 — QA Question 60
Choose 1; if the question can be answered by using one of the statements alone, but cannot be answered using the other statement alone.
Choose 2; if the question can be answered by using either statement alone.
Choose 3; if the question can be answered by using both statements together, but cannot be answered using either statement alone.
Choose 4; if the question cannot be answered even by using both statements together.
Harshad bought shares of a company on a certain day, and sold them the next day. While buying and selling he had to pay to the broker one percent of the transaction value of the shares as brokerage. What was the profit earned by him per rupee spent on buying the shares?
- The sales price per share was 1.05 times that of its purchase price.
- The number of shares purchased was 100.
Answer & solution
Correct answer: 1
1
- B
2
- C
3
- D
4
From Statement A
The cost of buying the shares for Harshad is
CP + 0.01 CP = 1.01 CP
The cost of selling the shares for Harshad is
SP – 0.01 SP = 0.99 SP
∴ Profit = Cost of selling – Cost of buying
= 0.99 SP – 1.01 CP
âµ SP = 1.05 CP
Profit = (0.99 × 1.05 CP) – 1.01 CP
= 0.0295 CP
∴ Profit earned per rupee spent on buying the shares is Rs 0.0295.
From the number of shares given in the statement B, we cannot conclude anything.
Hence, option (a).