A man bought Rs. 40 shares at a discount of 40%. Find his income, if he invests Rs. 12,000 in these shares and receives a dividend at the rate of 11% on the face value of the shares.

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Solution

$M a r k e t v a l u e o f e a c h s h a r e = 40 - \frac{40}{100} \times 40$
$o n c a l c u l a t i n g w e g e t M V = R s 24$
$N u m b e r o f s h a r e s = \frac{12000}{24} = 500 s h a r e s$
$i n c o m e = n o o f s h a r e s \times d i v i d e n t \times f a c e v a l u e$
$i n c o m e = 500 \times \frac{11}{100} \times 40 = 2200$

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