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Mathematics

If Kiran invests ₹ 19,200 on ₹ 50 shares at a premium of 20%, then the number of shares she buys is :

  1. 640

  2. 160

  3. 320

  4. 240

Shares & Dividends

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Answer

Given,

Investment = ₹ 19,200

Face Value = ₹ 50

Premium Rate = 20%

Premium = 20% of 50 = 20100×50\dfrac{20}{100} \times 50 = ₹ 10

Market Value = Face Value + Premium = 50 + 10 = ₹ 60

By formula,

Number of shares=InvestmentMarket Value of each share=1920060\text{Number of shares} = \dfrac{\text{Investment}}{\text{Market Value of each share}} = \dfrac{19200}{60} = 320.

Hence, Option 3 is the correct option.

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