Question

A man invested Rs. $5400$ in Rs. $20$ shares quoted at Rs. $12.50$. If the rate of dividend be $12\%$, his annual income is

• A. $1036.80$
• B. $2036.80$
• C. $3036.80$
• D. $4036.80$

Answer 1

The correct option is A $1036.80$

Market value of a share $=$ Rs. $12.50$
Investment $=$ Rs. $5400$
Number of shares $=$ $\frac{5400}{12.50}=432$
Face value of a share $=$ Rs. $20$
Dividend $=12\%$
Dividend per share $=$ $\frac{20\times 12}{100}=2.4$
His annual income is $432\times 2.4=$ Rs. $1036.80$