Question Details

Read the data carefully and answer the questions.



Note: (i) Market value = Total number of shares × price of one share
(ii) Number of shares increased by 20% from 2001 to 2002 and price of share decreased by 5% from 2002 to 2003.
(iii) Price of share decreased by 12% from 2005 to 2006 and number of shares decreased by 10% 2005 to 2006.

Find total market value in 2006.

Options

A

247,5000

B

245,5000

C

242,5000

D

239,5000

E

249,5000

Show Answer

Correct Answer :

Option A

247,5000

Solution :

To find the total market value in 2006, we need to calculate the number of shares in 2006 and the price per share in 2006.

Step 1: Extract the data from the given charts

From the first bar chart ("Total shares"), we find the number of shares in the year 2005:
Total shares in 2005 = 25,000

From the second bar chart ("Price per share in Rs."), we find the price of a share in the year 2006:
Price of one share in 2006 = Rs. 110

Step 2: Calculate the number of shares in 2006

According to note (iii), the number of shares decreased by 10% from 2005 to 2006.
Therefore, the number of shares in 2006 is:
Number of shares in 2006 = 25,000 × ( 1 - 0.10 )
Number of shares in 2006 = 25,000 × 0.90 = 22,500

Step 3: Calculate the total market value in 2006

Using note (i), the market value is defined as:
Market value = Total number of shares × Price of one share

By substituting the values calculated for 2006:
Market value in 2006 = 22,500 × 110
Market value in 2006 = 2,475,000

In the options, this value is represented with the format 247,5000.

Thus, the correct option is 247,5000.

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