Question

A man has a choice to invest in hundred - rupee shares of two companies A & B. Shares of company A are available at 20 % premium and pays 8 % dividend whereas shares of company B are available at a discount of 10% and it pays 7% dividend. If the man invested equally in both the companies and the sum of the return from there is ₹ 936, then how much, in all does he invest?

• A. ₹ 11920
• B. ₹ 12960
• C. ₹ 11280
• D. ₹ 12920

Answer 1

The correct option is B

₹ 12960

Let the man invest ₹ x in the company

For company A

N.V of each share = Rs 100

M.V of each share = Rs 100 + 20% of Rs 100 = ₹ 120

Number of shares bought $=\frac{x}{120}$ $[\because investmentof₹.x]$

Dividend on each share = 8% of ₹ 100 = ₹ 8

Total dividend $=₹8\times \frac{x}{120}=₹.\frac{x}{15}$

For company B

N.V of each share = ₹ 100

M.V of each share = ₹ 100 - 10% of ₹ 100 = ₹ 90

Number of share bought $=\frac{x}{90}$ $\left[investment₹x\right]$

Dividend on each share = 7% of 100 = ₹ 7

Total dividend $=₹.\frac{7\times x}{90}=₹\frac{7x}{90}$

Given, sum of dividend from both companies = ₹ 936

$\frac{x}{15}+\frac{7x}{90}=936$ i.e. x = 6480

The man invested ₹ 6480 in each of the two companies

The man invested x all $=2\times ₹.6480=₹12960$