A man invests a sum of money in ₹ 25 shares, paying 12% dividend and quoted at ₹ 36. If his annual income from these shares is ₹ 720, calculate :

(i) his total investment,

(ii) the number of shares bought by him,

(iii) the percentage return on his investment.

Given,

Face Value = ₹ 25

Market Value = ₹ 36

Rate of Dividend = 12%

Annual Income = ₹ 720

(i) Let the man bought x shares.

By formula,

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

$\Rightarrow 720 = x \times \dfrac{12}{100} \times 25 \\[1em] \Rightarrow 720 = 3x \\[1em] \Rightarrow x = \dfrac{720}{3} \\[1em] \Rightarrow x = 240.$

∴ No. of shares bought = 240

By formula,

Investment = Number of shares × Market value of each share

= 240 × 36

= ₹ 8,640.

Hence, the total investment equals to ₹ 8,640.

(ii) From part (i), we get :

No. of shares bought = 240

Hence, the number of shares bought equals to 240.

(iii) By formula,

$\text{Percentage return} = \dfrac{\text{Income}}{\text{Investment}} \times 100\%\\[1em] = \dfrac{720}{8640} \times 100\% \\[1em] = 8\dfrac{1}{3}\%.$

Hence, the percentage return on his investment is $8\dfrac{1}{3}\%$.