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The face value of a share is revalued from 80 per share to 180 for 2 shares. If the profit is 40% of the market value and market value is 200% of the face value, find the change in profits.

The face value of a share is revalued from 80 per share to 180 for 2 shares. If the profit is 40% of the market value and market value is 200% of the face value, find the change in profits. Correct Answer 8 rupees

The initial face value = 80 rupees for 1 share The initial market value = 200% of 80 = 160 The initial profit = 40% of 160 = 64 rupees The revalued face value = 180 rupees for 2 = 90 rupees per share The revalued market value = 200% of 90 = 180 The revalued profit = 40% of the market value = 40% of 180 = 72 rupees The change in the profits = 72 – 64 = 8 rupees

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