Question

A man invests 7,770 in a company paying
5 percent dividend when a share of nominal
value of 100 sells at a premium of 5.
Find :
(1) the number of shares bought;
(ii) annual income;
(iii) percentage income.​

Answer 1

AnswEr :

$\bf{\pink{\underline{\underline{\bf{Given\::}}}}}$

A man invests Rs.7770 in a company 5% dividend when a share of normal value of 100 sells at a premium of Rs.5.

$\bf{\red{\underline{\underline{\bf{To\:find\::}}}}}$

• The number of shares bought.
• Annual income.
• Percentage income.

$\bf{\purple{\underline{\underline{\bf{Explanation\::}}}}}$

$\bf{We\:have}\begin{cases}\sf{A\:man\:total\:Investment\:=Rs.7770}\\ \sf{Normal\:value\:=Rs.100}\\ \sf{Premium\:price\:=Rs.5}\\ \sf{Dividend\:=5\%}\end{cases}}$

$\bf{\yellow{\underline{\underline{\sf{According\:To\:the\:Question\::}}}}}$

$\leadsto\tt{Marked\:price\:(_{M.P.})=\:Normal\:value+Premium}\\\\\leadsto\tt{Marked\:price\:(_{M.P.})=Rs.(100+5)}\\\\\leadsto\tt{\purple{Maked\:price\:(_{M.P.})=Rs.105}}$

____________________________________________

$\bf{\large{\underline{\sf{\dag{The\:number\:of\:shares\:Bought\::}}}}}}$

$\mapsto\tt{Number\:of\:shares\:=\:\dfrac{Total\:Investment}{Marked\:price} }\\\\\\\\\mapsto\tt{Number\:of\:shares\:=\:\cancel{\dfrac{7770}{105} }}\\\\\\\\\mapsto\tt{\purple{Number\:of\:shares\:=\:74}}$

$\bf{\large{\underline{\sf{\dag{Annual\:Income\::}}}}}$

$\leadsto\sf{Annual\:Income=No.\:of\:shares\: \times dividend \times Normal\:price}\\\\\\\leadsto\sf{Annual\:Income=74\times 5\% \times 100}\\\\\\\leadsto\sf{Annual\:Income=74\times \dfrac{5}{\cancel{100}} \times \cancel{100}}\\\\\\\leadsto\sf{Annual\:Income=Rs.(74\times 5)}\\\\\\\leadsto\sf{\purple{Annual\:Income\:=\:Rs.370}}$

$\bf{\large{\underline{\sf{\dag{Percentage\:Income\::}}}}}$

$\mapsto\tt{Income\:\%=\bigg(\dfrac{Annual\:Income}{Total\:Investment} \times 100\bigg)\%}\\\\\\\\\mapsto\tt{Income\:\%=\bigg(\dfrac{370}{7770} \times 100\bigg)\%}\\\\\\\\\mapsto\tt{Income\:\%=\bigg(\cancel{\dfrac{37000}{7770}} \bigg)\%}\\\\\\\\\mapsto\tt{\purple{Income\:\%=4.76\%}}$

Answer 2

Answer:

Step-by-step explanation:

Total investment = Rs. 7770

Nominal value = Rs. 100

Premium = Rs. 5

Dividend =5%

Therefore, market value = 100+5= Rs. 105

No of share =  

Market value

Total investment

​  

=  

105

7770

​  

=74

Annual income = no.of share × dividend× nominal value

⇒74×  

100

5

​  

×100= Rs. 370