A man bought 20 shares of ₹ 50 at ₹ 5 discount, the rate of dividend being 1312 The rate of interest obtained is:
15%
Investment = ₹ [20 × (50 - 5)] = ₹ 900.
N.V of each share = ₹ 50
Let the rate of interest be x
M.V of each share = ₹ 45
Rate of Dividend = 1312 = 272
We have ; Rate of Interest × M.V = Rate of Dividend × N.V
x × 45 = 272 × 50
Rate of interest x = 272 × 5045
= 15%