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The face value of a share is changed from 40 rupees to 50 rupees. If the selling price of the share remained constant to 50% of the market value and the market value is 250% of the face value, find the change in the profit.

The face value of a share is changed from 40 rupees to 50 rupees. If the selling price of the share remained constant to 50% of the market value and the market value is 250% of the face value, find the change in the profit. Correct Answer 12.5 rupees

The initial face value = 40 rupees The initial market value = 250% of 40 = 100 rupees The initial profit = 50% of the market value = 50 The changed face value = 50 rupees The changed market value = 250% of 50 = 125 rupees The changed profit = 50% of the market value = 50% of 125 = 62.5 rupees The difference between the profits = 62.5 – 50 = 12.5 rupees

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