Question

his percentage income (rounded off to nearest integer) on his investment.

• A. $3.987\%$
• B. $4.34\%$
• C. $3.125\%$
• D. $2.564\%$

Answer 1

Answer: (A)

$3.987\%$

Sum invested=Rs.3072

Dividend=5%

Nominal value(N.V)=Rs.10

Market value (M.V)=Rs.16

No of share=$\frac{Suminvested}{M.Vof1share}$

$\therefore$No. of share=$\frac{3072}{16}=192$

Annual income=No.of share$\times$Rate of dividend$\times$N.V

$\Rightarrow 192\times \frac{5}{100}\times 10$

$\Rightarrow Rs.96$

% income$=\frac{Income}{Investment}\times 100$

$\Rightarrow \frac{96}{3072}\times 100=3.125$%