Question 12 Marks
Amit Kumar invests Rs 36,000 in buying Rs 100 shares at Rs 20 premium. The dividend is 15% per annum. Find :
(i) The number of shares he buys
(ii) His yearly dividend
(iii) The percentage return on his investment.
Give your answer correct to the nearest whole number.
(i) The number of shares he buys
(ii) His yearly dividend
(iii) The percentage return on his investment.
Give your answer correct to the nearest whole number.
Answer
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\begin{aligned}
& \text { Investment = Rs. } 36000 \\
& \text { Face value }=\text { Rs. } 100 \\
& \text { Premium = Rs. } 20 \text {, dividend }=15 \% \\
& \text { (i) No. of shares } \\
& =\frac{36000}{120} \\
& =300
\end{aligned}
$
(ii) Dlvidend
$
\begin{aligned}
& =15 \% \text { of }(100 \times 300) \\
& =\text { ₹ } 4500
\end{aligned}
$
(iii) $\%$ Return
$
\begin{aligned}
& =\frac{4500}{36000} \times 100 \\
& =\frac{450}{36} \\
& =12.5 \% \\
& =13 \% .
\end{aligned}
$
\begin{aligned}
& \text { Investment = Rs. } 36000 \\
& \text { Face value }=\text { Rs. } 100 \\
& \text { Premium = Rs. } 20 \text {, dividend }=15 \% \\
& \text { (i) No. of shares } \\
& =\frac{36000}{120} \\
& =300
\end{aligned}
$
(ii) Dlvidend
$
\begin{aligned}
& =15 \% \text { of }(100 \times 300) \\
& =\text { ₹ } 4500
\end{aligned}
$
(iii) $\%$ Return
$
\begin{aligned}
& =\frac{4500}{36000} \times 100 \\
& =\frac{450}{36} \\
& =12.5 \% \\
& =13 \% .
\end{aligned}
$