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Mathematics

Ashwarya bought 496, ₹ 100 shares at ₹ 132 each. Find :

(i) investment made by her.

(ii) income of Ashwarya from these shares, if rate of dividend is 7.5%

(iii) how much extra must Ashwarya invest in order to increase her income by ₹ 7,200?

Shares & Dividends

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Answer

(i) M.V. = ₹ 132

Investment = 496 × ₹ 132 = ₹ 65,472

Hence, investment made by Ashwarya = ₹ 65,472.

(ii) Dividend = No. of shares × Rate of div. × N.V. of 1 share

= 496 × 7.5100×100\dfrac{7.5}{100} \times 100

= ₹ 3,720.

Hence, income of Ashwarya = ₹ 3,720.

(iii) Dividend on 1 share = 1 × 7.5100×100\dfrac{7.5}{100} \times 100 = 7.5

No. of shares to buy in order to increase income by 7200 = 72007.5=960\dfrac{7200}{7.5} = 960

Investment = 960 × 132 = ₹ 1,26,720.

Hence, investment required = ₹ 1,26,720.

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