Mr. Michel invested ₹ 52000 on ₹ 100 shares at a discount of 20% paying $8 %$ dividend. Find his annual dividend.

Rs 80000

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Rs 6000

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Rs 52000

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Rs 5200

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Solution

The correct option is D
Rs 5200

Face value of one share = ₹ 100

Market value of one share = $80 %$ of ₹ 100

= 80/100 $\times$ 100 = ₹ 80

Investment = ₹ 52000

Number of shares purchased = 52000/80 = 650

Total face value = ₹ 650 $\times$ 100 = ₹ 65000

Annual dividend = $8 %$ of ₹ 65000

= 8/100 $\times$ 65000 = ₹ 5200.

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Mr. Michel invested ₹ 52000 on ₹ 100 shares at a discount of 20% paying 8% dividend. Find his annual dividend.

Mr. Michel invested ₹ 52000 on ₹ 100 shares at a discount of 20% paying $8 %$ dividend. Find his annual dividend.