Cost of Rs. 10,000 stock at par brokerage being 1/10

To find the cost of a stock at par brokerage, we need to consider the brokerage rate and the par value of the stock. In this case, the brokerage rate is given as 1/10, which means the brokerage charged is 1/10th of the stock's par value.

Step 1: Determine the Par Value

In order to calculate the cost of the stock, we first need to determine the par value. The par value is the nominal or face value of the stock, which is typically set by the company issuing the stock. Let's assume that the par value of the stock is Rs. 100.

Step 2: Calculate the Brokerage

The brokerage rate is given as 1/10. To calculate the brokerage amount, we multiply the par value by the brokerage rate. In this case, the brokerage amount would be:

Brokerage Amount = Par Value x Brokerage Rate
= Rs. 100 x 1/10
= Rs. 10

Step 3: Calculate the Cost of the Stock

To find the total cost of the stock, we need to add the brokerage amount to the par value. In this case, the cost of the stock would be:

Cost of the Stock = Par Value + Brokerage Amount
= Rs. 100 + Rs. 10
= Rs. 110

Therefore, the cost of a Rs. 10,000 stock at par brokerage being 1/10 would be Rs. 110.

Summary:

- Par Value: Rs. 100
- Brokerage Rate: 1/10
- Brokerage Amount: Rs. 10
- Cost of the Stock: Rs. 110

In conclusion, the cost of a Rs. 10,000 stock at par brokerage being 1/10 is Rs. 110. This calculation takes into account the par value of the stock and the brokerage rate, which is 1/10th of the par value. By adding the brokerage amount to the par value, we can determine the total cost of the stock.