Question

Ashish bought 496 Rs 100 shares at Rs 132 each, at rate of dividend 7.5% and get some income. How much extra she must invest in order to increase her income by Rs 7200

• A. 1,28,760
• B. 1,28,460
• C. 1,26,320
• D. 1,26,720

Answer 1

The correct option is D

1,26,720

No. of share bought = 496

N.V = Rs.100

M.V = Rs.132

Investment made = 496 $\times$ 132 = 65472

Income made by him at 7.5 % dividend

= No. of shares $\times$ dividend % $\times$ N.V

$=496\times \frac{7.5}{100}\times 100=3720$

If he want to increase his income by Rs 7200

his total income should be Rs.3720 + Rs. 7200=Rs.10920

Income made = No. of shares $\times$ dividend $\times$ N.V

$\Rightarrow 10920=No.ofshare\times \frac{75}{100}\times 100$

$\Rightarrow$ No. of shares he should buy should be = 1456

Investment needed for this = No. of shares $\times$ M.V

= 1456 $\times$ 132 = 192192

So extra investment he needed to make = Rs. 192192 - Rs. 65472

= Rs. 1,26,720