Question

₹ 40 shares of a company are selling at 25% premium. If Mr. Wasim wants to buy 280 shares of the company, then the investment required by him is ______.

Options

• ₹ 14000

• ₹ 16800

• ₹ 8400

• ₹ 10,000

Answer 1

₹ 40 shares of a company are selling at 25% premium. If Mr. Wasim wants to buy 280 shares of the company, then the investment required by him is ₹ 14000.

Explanation:

Selling price = ₹ 40 + 25% of ₹ 40 

= ₹ 40 × 1.25 

= ₹ 50 per share 

For 280 shares: 280 × ₹ 50 

= ₹ 14,000