Question

Smt. Deshpande purchased shares of FV Rs. 5 at a premium of Rs. 20. How many shares will she get for Rs. 20,000?

Answer 1

Here, FV = Rs. 5, Premium = Rs.20, Sum invested = Rs.20,000 

∴ MV = FV + Premium = 5 + 20 

∴ MV = Rs.25 Now, sum invested = Number of shares × MV

∴ Number of shares = Sum invested / MV

= 20,000/25

= 800

∴ Smt. Deshpande got 800 shares for Rs. 20,000.