Question

A man invests ₹ 15000 in a company paying 6 % dividend when its ₹ 100 shares can be bought for ₹ 150. Find

i) the number of shares he bought

ii) his annual income

iii) his percentage income on his investment

• A. i) 200 (ii) ₹ 1600 (iii) 5%
• B. i) 100 (ii) ₹ 1600 (iii) 4%
• C. i) 100 (ii) ₹ 600 (iii) 4%
• D. i) 300 (ii) ₹ 5000 (iii) 5%

Answer 1

The correct option is C

i) 100 (ii) ₹ 600 (iii) 4%

Investment = ₹ 15,000, Market Value of each share = ₹ 150

Number of shares bought = $\frac{TotalInvestment}{MarketValueoftheshare}$
= $\frac{15,000}{150}$
= 100

ii) Annual Income = Number of shares $\times$ Rate of dividend $\times$ Face value of one share
= 100 $\times$ $\frac{6}{100}$ $\times$ 100
= ₹ 600

iii) ₹ 600 is the income of ₹ 15000
$\therefore$ Percentage of income = $(\frac{600}{15000}\times 100$)
= 4 %