Question

A man invests ₹60,000 in shares of a company which pays 12 % dividend at a time when a ₹100 share costs ₹120. Find :-

a) Number of shares he bought.

b) the annual income from his shares.

• A. i) 500 , (ii) ₹6000
• B. i) 550 , (ii) ₹6500
• C. i) 400 , (ii) ₹5000
• D. i) 200 , (ii) ₹20,000

Answer 1

The correct option is A

i) 500 , (ii) ₹6000

Sum invested = ₹60,000

Market price of each share = ₹120

Number of shares bought = $\frac{AmountInvested}{MarketValueofeachshare}=500$

= $\frac{60000}{120}=500$

Total Income from share = No. of share $\times$ Dividend % $\times$ N.V of share = $500\times \frac{12}{100}\times 100=₹6000$

Hence, Number of shares bought = 500 and Annual Income = ₹ 6000.