Mathematics
A man invests ₹ 7,770 in a company paying 5 percent dividend when a share of nominal value of ₹ 100 sells at a premium of ₹ 5. Find :
(i) the number of shares bought;
(ii) annual income;
(iii) percentage income.
Shares & Dividends
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Answer
Total money invested = ₹ 7,770
Market value = ₹ 100 + ₹ 5 = ₹ 105
(i) No. of shares bought = = 74.
Hence, no. of shares bought = 74.
(ii) Annual income = No. of shares × Rate of div. × N.V. of 1 share
=
= ₹ 370.
His total annual income = ₹ 370.
(iii) Percentage income = = 4.76%.
Hence, percentage income = 4.76%.
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