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12500 shares, of par value Rs. 20 each, are purchased from Ram by Mohan at a price of Rs. 25 each. If Mohan further sells the shares at a premium of Rs. 11 each, find his gain in the transaction.

Rs. 75000
Rs. 70000
Rs. 85000
Rs. 65000
Explanation:

Face value of each share = Rs.20

Market value of each share = Rs.25

Number of shares = 12500

Amount required to purchase the shares = 12500 × 25 = 312500

Mohan further sells the shares at a premium of Rs. 11 each

ie, Mohan further sells the shares at Rs.(20+11) = Rs.31 per share

Total amount he gets by selling all the shares = 12500 × 31 = 387500

His gain = 387500 - 312500 = Rs.75000

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