Question

A man invest Rs.3072 in a company paying 5%per annum, when its Rs.10 share can be bought for Rs.16 each. Find: (1) his annial income; (2)his percentage income on his investment.

Answer 1

Since the market value of one share is Rs.16 and money invested is Rs.3072

no. of shares bought =3072/16=192

1.) Annual income = no. of shares ×rate of dividend × f.v of one share
=192×(5/100)×10
=96

2.) % income = (annual income / investement)×100

=(96/3072)×100
=3.125%

Answer 2

since MV of one share is rupees 16 and money invested equals to rupees 3072

n=3072/16

=192

annual income= nrf/100

= 192×5×10/100

=96

%income=

annual income×100/investment

=96×100/3072

=3.125%