Question

Ashwarya bought 496, Rs 100 shares at Rs 132 each. Find :

(i) an investment made by her.

(ii) income of Ashwarya from these shares, if the rate of dividend is 7.5%.

(iii) how much extra must Aishwarya invest in order to increase her income by Rs 7,200?

Answer 1

1) N. V of each share = Rs 100

M.V of each share = Rs 132

Investment made by her = 496 $\times$ 132 = Rs 65472

2) Dividend on 1 share = 7.5 % of Rs 100 = Rs 7.5

So Income of Ashwarya from these shares = 496 $\times$ 7.5= Rs 3720

3) If she wants to increase her income by Rs 7200

the number of shares she should buy = $\frac{increaseintheincome}{incomeofoneshare}=\frac{7200}{7.5}=Rs960$

So she should invest = 960 $\times$ 132= Rs 126720