Mr. Parekh invested Rs 52,000 on Rs 100 shares at a discount of Rs 20 paying 8% dividend. At the end of year he sells the shares at a premium of Rs 20. Find :

(i) the annual dividend.

(ii) the profit earned including his dividend.

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Solution

No. of shares: $= \frac{52, 000}{80}$
= 650

Annual dividend: $= 650 \times 100 \times 0.08$
= 5,200

Profit from sale plus dividend:
= 650(120 - 80) + 5,200
= 650(40) + 5,200
= 26,000 + 5,200
= 31,200

Answer: dividend, Rs. 5,200; gain from sale of shares, Rs. 26,000; Total, Rs. 31,200

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Mr. Parekh invested Rs 52,000 on Rs 100 shares at a discount of Rs 20 paying 8% dividend. At the end of year he sells the shares at a premium of Rs 20. Find : (i) the annual dividend. (ii) the profit earned including his dividend.

No. of shares: =52,00080 = 650 Annual dividend: =650×100×0.08 = 5,200 Profit from sale plus dividend: = 650(120 - 80) + 5,200 = 650(40) + 5,200 = 26,000 + 5,200 = 31,200 Answer: dividend, Rs. 5,200; gain from sale of shares, Rs. 26,000; Total, Rs. 31,200

Mr. Parekh invested Rs 52,000 on Rs 100 shares at a discount of Rs 20 paying 8% dividend. At the end of year he sells the shares at a premium of Rs 20. Find :

(i) the annual dividend.

(ii) the profit earned including his dividend.

No. of shares: $= \frac{52, 000}{80}$
= 650

Annual dividend: $= 650 \times 100 \times 0.08$
= 5,200

Profit from sale plus dividend:
= 650(120 - 80) + 5,200
= 650(40) + 5,200
= 26,000 + 5,200
= 31,200

Answer: dividend, Rs. 5,200; gain from sale of shares, Rs. 26,000; Total, Rs. 31,200