Question

Vijay wants to invest ₹ 27,000 in buying shares. The shares of the following companies are available to him. ₹ 100 shares of company A at par value; ₹ 100 shares of company B at a premium of ₹ 25; ₹ 100 shares of company C at a discount of ₹ 10; ₹ 50 shares of company D at a premium of 20%. Find how many shares will he get if he buys shares of

1. Company A
2. Company B
3. Company C
4. Company D

Answer 1

i. For Company A:

Investment = ₹ 27,000

F.V. = ₹ 100, M.V. = ₹ 100

No. of shares = `"Investment"/("M"."V") = 27000/100` = 270

ii. For Company B:

Investment = ₹ 27,000

M.V. = ₹ 100 + 25 = ₹ 125

No. of shares = `"Investment"/("M"."V") = 27000/125` = 216

iii. For Company C:

Investment = ₹ 27,000

M.V. = ₹ 100 − 10 = ₹ 90

No. of shares = `"Investment"/("M"."V") = 27000/90` = 300

iv. For Company D:

Investment = ₹ 27,000

M.V. = 50 + 20% of 50

= `50 + 20/100 xx 50`

= 50 + 10

= 60

No. of shares = `"Investment"/("M"."V") = 27000/60` = 450