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Mathematics

Amit invested a certain sum of money in ₹ 100 shares, paying a 7.5% dividend. The rate of return on his investment is 10%. The money invested by Amit to purchase 10 shares is :

  1. ₹ 250

  2. ₹ 750

  3. ₹ 900

  4. ₹ 1100

Shares & Dividends

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Answer

Let ₹ P be the price per share.

Amit brought 10 shares, so total investment = ₹ 10P

Dividend = 7.5%

Dividend per share = 7.5100×100\dfrac{7.5}{100} \times 100 = ₹ 7.5

Total dividend = ₹ 7.5 × 10 = ₹ 75.

Rate of return = 10%

By formula,

Rate of return × Investment = Dividend

10%×10P=7510100×10P=75100P100=75P=75.\Rightarrow 10\% \times 10P = 75 \\[1em] \Rightarrow \dfrac{10}{100} \times 10P = 75 \\[1em] \Rightarrow \dfrac{100P}{100} = 75 \\[1em] \Rightarrow P = ₹ 75.

Total investment = 10P = 10 × ₹75 = ₹750.

Hence, Option 2 is the correct option.

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