Question

Smt. Deshpande purchased shares of FV rupees 5 at a premium of rupees 20. How many shares will she get for rupees 20,000 ? Solve the word problem

Answer 1

Answer:

800 Shares she will get for Rs 20000

Step-by-step explanation:

Face Value of Share = Rs 5  per share

Premium on share = Rs 20 Per share

Cost Price Per share = 5 + 20 = 25 Rs

Money invested = Rs 2000

Number of Shares she will get = 20000/25  = 800

800 Shares she will get for Rs 20000

Answer 2

Answer:

Market value of each share = FV + Premium = Rs 5 + Rs 20 = Rs 25

Sum invested = Rs 20,000

∴ Number of shares = Sum invested/Market value of each share=20000/25 = 800

Thus, the number of shares purchased by Smt. Deshpande are 800.