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Mathematics

How much should a man invest in ₹ 100 shares selling at ₹ 110 to obtain an annual income of ₹ 1,680, if the dividend declared is 12% ?

Shares & Dividends

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Answer

Let man invest ₹ x

∴ No. of shares = x110\dfrac{x}{110}

We know that,

Annual income = No. of shares × Rate of div. × N.V. of 1 share

1680=x110×12100×100x=1680×11012x=15,400\Rightarrow 1680 = \dfrac{x}{110} \times \dfrac{12}{100} \times 100 \\[1em] \Rightarrow x = \dfrac{1680 \times 110}{12} \\[1em] \Rightarrow x = 15,400

Hence, investment = ₹ 15,400.

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