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Mathematics

A man invests a certain sum in buying 15% ₹ 100 shares at 20% premium. Find :

(i) his income from one share

(ii) the number of shares bought to have an income, from the dividend, ₹ 6,480.

(iii) sum invested.

Shares & Dividends

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Answer

(i) Dividend on 1 share = 15100×100\dfrac{15}{100} \times 100 = ₹ 15.

Hence, the income from one share is ₹ 15.

(ii) Number of shares bought = Annual incomeDiv. on 1 share=648015=\dfrac{\text{Annual income}}{\text{Div. on 1 share}} = \dfrac{6480}{15} = 432.

Hence, the number of shares bought = 432.

(iii) M.V. = ₹ 100 + ₹ 20100×100\dfrac{20}{100} \times 100 = ₹ 100 + ₹ 20 = ₹ 120.

Total investment = No. of shares × M.V. = 432 × ₹ 120 = ₹ 51,840.

Hence, sum invested = ₹ 51,840.

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