A man invests ₹20306 in buying shares of nominal value ₹26 at $10 %$ premium. Calculate the number of shares he buys.

710

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700

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500

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600

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Solution

The correct option is A
710

Total investment = ₹20306
Face value of 1 share = ₹26
Premium on 1 share = $10 %$ of ₹26 $= R s (\frac{10}{100}) \times 26 = ₹ 2.6$
Market value of 1 share = ₹ $(26 + 2.6)$ = ₹28.6

The number of shares bought by the person $= \frac{Total investment}{Market value of 1 share}$
$= \frac{20306}{28.6} = 710$

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[3 MARKS]

A man invests ₹20306 in buying shares of nominal value ₹26 at 10% premium. Calculate the number of shares he buys.

The correct option is A 710 Total investment = ₹20306 Face value of 1 share = ₹26 Premium on 1 share = 10% of ₹26 =Rs(10100)×26=₹2.6 Market value of 1 share = ₹ (26+2.6) = ₹28.6 The number of shares bought by the person =Total investmentMarket value of 1 share =2030628.6=710

A man invests ₹20306 in buying shares of nominal value ₹26 at $10 %$ premium. Calculate the number of shares he buys.