An investor holds 2000 shares of a company that has a face value of Rs.100/- each.The company pays a 25% dividend annually.Calculate the annual dividend and the percentage return ( correct to the nearest integer ) if the shares were bought at 40% premium.
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(i) The interest for the first year
(ii) The amount for the end of the first year
(iii) The interest for the second year.
Solution:-
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To find
(i) The interest for the first year
(ii) The amount for the end of the first year
(iii) The interest for the second year.
Solution:-
(i)The interest for the first year = (6000×14×1)/100
interest for the 1st year is= 60 × 14=480
ii)The amount for the end of the 1st year = 6840
iii)The interest for the 2nd= ( 6840×14×1 ) / 100= Rs957.60.
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