Question

Joseph purchased following shares, Find his total investment.

Company A : 200 shares,	FV = Rs 2	Premium = Rs 18
Company B : 45 shares,	MV = Rs 500
Company C : 1 share,	MV = Rs 10,540.

Answer 1

Market value of each share of company A = FV + Premium = Rs 2 + Rs 18 = Rs 20

Investment in company A = Number of shares of company A × MV of each share of company A = 200 × 20 = Rs 4,000

Investment in company B = Number of shares of company B × MV of each share of company B = 45 × 500 = Rs 22,500

Investment in company C = Number of shares of company C × MV of each share of company C = 1 × 10540 = Rs 10,540

∴ Total investment = Investment in company A + Investment in company B + Investment in company C

= Rs 4,000 + Rs 22,500 + Rs 10,540

= Rs 37,040

Thus, the toal investment of Joseph is Rs 37,040.