Question

a man invest. a sum of money is rs25 shares, paying 12% dividend and quoted at rs36.if his annual icome from these shares is rs720,calucute:
the number of shares bought by him​

Answer 1

Let the number of shares = n

Nominal Value (NV) of a share = Rs. 25

Nominal Value of n shares = 25n Rs.

Market Value of a share = Rs. 36

Dividend = 12% of NV

             

$= > \frac{12}{100} \times 5n \:$

Since his income from the shares is Rs. 720

Therefore ,

$= > \frac{12}{100} \times 5n = 720$

$or \: n \: = \frac{750}{25} \times \frac{100}{12}$

or, n = 240

Total investment = Market Value of 240 shares

                            = 240 × 36

                           = 8640 Rs.