Ram invested Rs. $1200$ in shares of a company paying $5 %$ per annum. If he bought Rs. $100$ shares for Rs. $50$ , find his annual income from his investment.

100

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120

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140

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160

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Solution

The correct option is B $120$
Market value of each share = $R s . 50$
Number of shares bought = $\frac{1200}{50} = 24$
Nominal value of 24 shares = number of shares $\times$ face value
= $24 \times 100 = 2400$
Annual income of dividend = dividend $%$ $\times$ (nominal value of 24 shares)
= $2400 \times \frac{5}{100}$
= $R s . 120$

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Ram invested Rs. 1200 in shares of a company paying 5% per annum. If he bought Rs. 100 shares for Rs. 50, find his annual income from his investment.

The correct option is B 120Market value of each share = Rs. 50Number of shares bought = 120050=24Nominal value of 24 shares = number of shares × face value= 24×100=2400Annual income of dividend = dividend% × (nominal value of 24 shares)= 2400×5100= Rs. 120

Ram invested Rs. $1200$ in shares of a company paying $5 %$ per annum. If he bought Rs. $100$ shares for Rs. $50$ , find his annual income from his investment.