Q3 of 55 Page 102

Joseph purchased following shares, Find his total investment.

Company A : 200 shares, FV = Rs. 2 Premium = Rs. 18.


Company B : 45 shares, MV = Rs. 500


Company C : 1 share, MV = Rs. 10,540.

Company A: Premium = Rs. 18


We know that if MV > FV, then the share is at premium.


∴ MV = FV + Premium


⇒ MV = 2 + 18 = Rs.20


We know that investment = number of shares × MV


∴ Investment in company A = 200 × 20


= Rs. 4000


Company B:


∴ Investment in company B = 45 × 500


= Rs. 22, 500


Company C:


∴ Investment in company C = 1 × 10, 540


= Rs. 10, 540


Joseph has invested 4000 + 22, 500 + 10, 540 = Rs. 37, 040


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