Question

Amar invest Rs. 25,000 in shares of per value Rs. 25 at 10% premium. The dividend is 20% per annum. Calculate the approximate number of shares.

• A. 909
• B. 1000
• C. 1200
• D. 2000

Answer 1

The correct option is A 909

Here, Per value = $Rs25$, Premium = $10\%$

Let the no. of shares be $x$
Thus, the market value of one share = $Rs.25+10\%ofRs.25$ = $25(1+\frac{1}{100})$
= $25\times \frac{11}{10}$ = $Rs.27.5$
As per the question, $27.5x=25000$
$x=909$
The approximate number of shares = $909$