By investing ₹ 10,000 in the shares of a company, a man gets an income of ₹ 800; the dividend being 10%. If the face-value of each share is ₹ 100, find :

(i) the market value of each share.

(ii) the rate percent which the person earns on his investment.

(i) Given,

Nominal value (N.V.) = ₹ 100

Income (dividend) on one share = 10 % of N.V. = $\dfrac{10}{100} \times 100 = 10$.

Given,

Total income = ₹ 800

⇒ No. of shares × Income on one share = 800

⇒ No. of shares × 10 = 800

⇒ No. of shares = $\dfrac{800}{10} = 80$.

We know that,

⇒ Sum invested = M.V. of each share × No. of shares

⇒ 10000 = M.V. of each share × 80

⇒ M.V. of each share = $\dfrac{10000}{80}$ = ₹ 125

Hence, M.V. of each share = ₹ 125

(ii) Given,

Man earns an income of ₹ 800 on investing ₹ 10000.

Rate percent = $\dfrac{\text{Income}}{\text{Investment}} \times 100$

$= \dfrac{800}{10000} \times 100 \\[1em] = \dfrac{80000}{10000} \\[1em] = 8\%.$

Hence, person earns 8% on his investment.