Question

Arun owns $560$ shares of a company. The face value of each share is Rs. $25$. The company declares a dividend of $9\%$. Calculate the rate of interest on his investment, considering that Arun bought these shares at the rate of Rs. $30$ per share in the market.

Answer 1

Arjun owns share $=560$

Face value of $1$ share $=25$

Dividend declaned $=9$%

To find the rate of interest on his investment. Arjun buys these shares at Rs$30$.

Dividend on $1$ share $=Rs\frac{9}{100}\times 25=\frac{9}{4}=Rs2.25$

$560$ share $=Rs\frac{9}{4}\times 560=Rs1260$

Rate of interest when he buys share at Rs$30$ $=\frac{1260}{30\times 560}\times 100$%

$=7.5$%