Question

Calculate the investment required to buy:

150 shares of Rs 100 each at a premium of 12%.

Answer 1

150 shares of Rs 100 each at a premium of 12 %.

No. Of shares to be purchased = 150

Rs 100 shares at a premium of 12 % =Rs ( 100+ 12 % of Rs 100)

= Rs (100+12) = Rs 112

Therefore, money required to purchase 150 shares

= Rs 112 x 150 = Rs 16,800.