Question

A man invests * 7,770 in a company paying 5 per cent dividend
when 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

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.

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To find :

(i) The number of shares bought.

(ii) Annual income.

(iii) Percentage income.

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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

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Solution :

→ Number of shares = 7770/105

→ Number of shares = 74

→ Value of shares = 74 × 100

→ Value of shares = 7400

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→ Income = 5/100 × 7400

→ Income = 0.05 × 7400

→ Income = 370

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→ Income percentage = 370/7770 × 100

→ Income percentage = 0.0476 × 100

→ Income percentage = 4.76%

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Therefore ,

1) Number of shares = 74.

2) Income = 7400.

3) Income percentage = 4.76%