Question

A man invests * 7,770 in a company paying 5 per cent dividendwhen a share of nominal value of 100 sells at a
premium of

5. Find :
(i) the number of shares bought;(ii)annual income;(iii) percentage income.​

Answer 1

Total money invested = Rs. 7,770

Nominal value of 1 share = Rs. 100

Market value of 1 share = Rs. 100 + Rs. 5 = Rs. 105

∴ No of shares purchased = 7770/105=74

Nominal value of 74 shares = 74 × 100 = Rs. 7,400

Annual income = 5% of Rs. 7,400

$= \frac{5}{100} \times 7400$

$= rs.370$

$income\% = \frac{370}{7770} \times 100\% = 4.76$

I HOPE IT HELPS. ☺FOLLOW ME ✌THEN I WILL SURELY FOLLOW YOU BACK.☺

Answer 2

Given :

A man invests Rupees 7,700 in a company playing five per cent dividend, When a share of nominal value of 100 sells at a premium of Rupees 5.

ㅤㅤ

To find :

(i) The number of shares bought.

(ii) Annual income.

(iii) Percentage income.

ㅤㅤ

Using formula :

• Number of shares bought = Money invested/Value of a single share.

• Annual income = Premium of rupees/100 × Number of shares.

• Income percentage = Annual income/Money invested × 100

ㅤㅤ

Solution :

→ Number of shares = 7770/105

→ Number of shares = 74

→ Value of shares = 74 × 100

→ Value of shares = 7400

ㅤㅤ

→ Income = 5/100 × 7400

→ Income = 0.05 × 7400

→ Income = 370

ㅤㅤ

→ Income percentage = 370/7770 × 100

→ Income percentage = 0.0476 × 100

→ Income percentage = 4.76%

ㅤㅤ

Therefore ,

1) Number of shares = 74.

2) Income = 7400.

3) Income percentage = 4.76%