Question

Mr. Anil bought $₹110$ shares of a company at a discount of $₹10$. If the company pays a dividend at the rate of $x\%$ per annum and Mr. Anil earns at the rate of $y\%$ per annum on his investment, then $x:y$ is

• A. $10:9$
• B. $9:10$
• C. $11:10$
• D. $10:11$

Answer 1

The correct option is D

$10:11$

Find the market value of the share

Given, Face value$=₹110$

Discount$=₹10$

Market value $=₹100$[∵ $Marketvalue=Facevalue-Discount$]

Dividend%$=x\%$

Rate of return%$=y\%$

Using the formula, $\mathit{F}\mathit{a}\mathit{c}\mathit{e}\mathbf{}\mathit{v}\mathit{a}\mathit{l}\mathit{u}\mathit{e}\mathbf{\times }\mathit{D}\mathit{i}\mathit{v}\mathit{i}\mathit{d}\mathit{e}\mathit{n}\mathit{d}\mathbf{\%}\mathbf{=}\mathbf{}\mathit{M}\mathit{a}\mathit{r}\mathit{k}\mathit{e}\mathit{t}\mathbf{}\mathit{v}\mathit{a}\mathit{l}\mathit{u}\mathit{e}\mathbf{\times }\mathit{R}\mathit{a}\mathit{t}\mathit{e}\mathbf{}\mathit{o}\mathit{f}\mathbf{}\mathit{r}\mathit{e}\mathit{t}\mathit{u}\mathit{r}\mathit{n}\mathbf{\%}$

$$\begin{gathered} 110\times x=100\times y \\ \frac{x}{y}=\frac{100}{110} \\ \frac{x}{y}=\frac{10}{11} \end{gathered}$$

Hence, The $x:y$ is $\mathbf{10}\mathbf{:}\mathbf{}\mathbf{11}$. Therefore, option D is correct.