A man invests Rs. 1600 in buying shares of nominal value Rs. 50 each and selling at 10% premium. The dividend on the shares is 20% per annum. calculate the number of shares he buys.
A
19
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B
29
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C
39
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D
49
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Solution
The correct option is B29 Man's investment = Rs. 1600 N.V. of 1 share = Rs. 50 Premium on 1 share =10% of Rs. 50= Rs. 5 M.V. of 1 share =50+5= Rs. 55 Number of shares bought =investmentM.V. of 1 share=160055=29