Question

A man purchases a stock of Rs 20,000 of face value 100 at a premium of 20%, then investment is: 

(a) Rs 20,000 

(b) Rs 24,000 

(c) Rs 22,000 

(d) Rs 30,000

Answer 1

(b) Rs 24,000 

Investment = Number of shares x Market value 

= \(\frac{20000}{100}\) x 120 

= 24000