A man buys Rs 75 shares at a discount of Rs 15 of a company paying 20% divident. Find :

(i) the market value of 120 shares ;

(ii) his annual income;

(iii) his profit percent.

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Solution

(i)Nominal value of 1 share = Rs. 75
Market value of 1 share = Rs. 75 – Rs. 15 = Rs. 60
Market value of 120 shares = 120 $\times$ 60 = Rs. 7,200

(ii)Nominal value of 120 shares = 120 $\times$ 75 = Rs. 9,000
Annual income = 20% of Rs. 9,000
= $\times$ 9,000
= Rs. 1,800

(iii)Profit % = $fraction numerator 1 comma 800 over denominator 7 comma 200 end fraction$ $\times$ 100% = 25%

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A man buys Rs 75 shares at a discount of Rs 15 of a company paying 20% divident. Find : (i) the market value of 120 shares ; (ii) his annual income; (iii) his profit percent.

(i)Nominal value of 1 share = Rs. 75 Market value of 1 share = Rs. 75 – Rs. 15 = Rs. 60 Market value of 120 shares = 120 × 60 = Rs. 7,200 (ii)Nominal value of 120 shares = 120 × 75 = Rs. 9,000 Annual income = 20% of Rs. 9,000 = × 9,000 = Rs. 1,800 (iii)Profit % = × 100% = 25%

A man buys Rs 75 shares at a discount of Rs 15 of a company paying 20% divident. Find :

(i) the market value of 120 shares ;

(ii) his annual income;

(iii) his profit percent.