How much money will be required to buy 400, `12.50rs` shares at a premium of `1rs` ?

Answer

To solve the problem of how much money will be required to buy 400 shares at a nominal value of ₹12.50 each with a premium of ₹1, we can follow these steps:

### Step 1: Identify the number of shares
The number of shares given in the problem is:
\[ \text{Number of shares} = 400 \]

### Step 2: Identify the nominal value of the shares
The nominal value (or face value) of each share is given as:
\[ \text{Nominal value} = ₹12.50 \]

### Step 3: Identify the premium on the shares
The premium on each share is given as:
\[ \text{Premium} = ₹1 \]

### Step 4: Calculate the market value of one share
The market value of one share is calculated by adding the nominal value and the premium:
\[ \text{Market value of one share} = \text{Nominal value} + \text{Premium} \]
\[ \text{Market value of one share} = ₹12.50 + ₹1 = ₹13.50 \]

### Step 5: Calculate the total money required to buy the shares
To find the total amount of money required to buy 400 shares, multiply the number of shares by the market value of one share:
\[ \text{Total money required} = \text{Number of shares} \times \text{Market value of one share} \]
\[ \text{Total money required} = 400 \times ₹13.50 \]
\[ \text{Total money required} = ₹5400 \]

### Final Answer
Therefore, the total money required to buy 400 shares at a premium of ₹1 is:
\[ \text{Total money required} = ₹5400 \]

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