Mr Sharma has 60 shares of nominal value of Rs 100 and he decides to sell them when they are at a premium of 60%. He invests the proceeds in shares of nominal value of Rs 50, quoted at 4% discount, paying 18% dividend annually. Calculate the sale proceeds.

₹9600

The correct answer is option (2) : ₹9600

Nominal value of 1 share = ₹100

Mr Sharma sold the shares at 60% premium

S.P of 1 share = $₹100 + ₹60 = ₹160$

∴S.P of 60 shares $=₹160×60= ₹9600$