Question

Smita has invested \( ₹12,000 \) and purchased shares of FV \( ₹10 \) at a premium of \( ₹2 \). How many shares did she purchase?

Options

• 1000 shares

• 100 shares

• 1200 shares

• 12,000 shares

Answer 1

MV = FV + Premium = \[ 10 + 2 = 12 \]. Number of shares = Total investment ÷ MV = \[ \frac{12000}{12} = 1000 \] shares.