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Mr. Ganesh bought 4,500 shares of ABC company at the rate of Rs. 14 each. He sold 3,000 shares at a cost of Rs. 18 each, and then after one week, the price of the share decreased by one-third of its value and he sold the remaining shares. Find the profit or loss made by Mr. Ganesh in the entire transaction considering brokerage charged is negligible.

Question

Mr. Ganesh bought 4,500 shares of ABC company at the rate of Rs. 14 each. He sold 3,000 shares at a cost of Rs. 18 each, and then after one week, the price of the share decreased by one-third of its value and he sold the remaining shares. Find the profit or loss made by Mr. Ganesh in the entire transaction considering brokerage charged is negligible.

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Solution

Step 1: Calculate the total cost of the shares bought by Mr. Ganesh.

Mr. Ganesh bought 4,500 shares at the rate of Rs. 14 each. So, the total cost of the shares = 4,500 * 14 = Rs. 63,000

Step 2: Calculate the total amount Mr. Ganesh got from selling 3,000 shares.

He sold 3,000 shares at a cost of Rs. 18 each. So, the total amount he got = 3,000 * 18 = Rs. 54,000

Step 3: Calculate the new price of the share after it decreased by one-third of its value.

The price of the share decreased by one-third of its value. So, the new price = 14 - (14/3) = Rs. 9.33 (approx)

Step 4: Calculate the total amount Mr. Ganesh got from selling the remaining shares.

He had 4,500 - 3,000 = 1,500 shares left. He sold these at the new price. So, the total amount he got = 1,500 * 9.33 = Rs. 13,995 (approx)

Step 5: Calculate the total amount Mr. Ganesh got from selling all the shares.

The total amount = amount from selling 3,000 shares + amount from selling the remaining shares = 54,000 + 13,995 = Rs. 67,995

Step 6: Calculate the profit or loss made by Mr. Ganesh.

The profit or loss = total amount from selling all the shares - total cost of the shares = 67,995 - 63,000 = Rs. 4,995

So, Mr. Ganesh made a profit of Rs. 4,995 in the entire transaction.

This problem has been solved

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