Question

By purchasing Rs. 50 gas shares for Rs. 80 each, a man gets 4% profit on his investment. What rate percent is company paying ? What is his dividend if he buys 200 shares?​

Answer 1

Given:

Market value of each share = Rs 80

Face value of each share = Rs. 50

Interest on investment = 4%

Let's Find:

Dividend on Rs 80 = (80 x 4)/ 100

= 32/10

Percent dividend = (32/10) x (100/50)

= 64/10

= 6.4%

Now shares:

Number of shares = 200

Face value of 200 shares = 200 x 50

= Rs 10000

Dividend = Rs 10000 x (6.4/100)

= Rs 640

Answer 2

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By purchasing Rs. 50 gas shares for Rs. 80 each, a man gets 4% profit on his investment. What rate percent is company paying ? What is his dividend if he buys 200 shares?

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Market value of each share = Rs 80

Face value of each share = Rs 50

Interest of investment = 4%

Dividend on Rs 80 = $\frac{80×4}{100}$ ${\implies}$ $\frac{32}{10}$

Now dividend on face value Rs 50 = $\frac{32}{10}$

${\because}$ Percent dividend = $\frac{32}{10}$×$\frac{100}{50}$ ${\implies}$ $\frac{64}{10}$ ${\implies}$ 6.4%

No. of shares purchased = 200

${\because}$ Face value of 200 shares

= Rs. 200× 50

= Rs. 10,000

Dividend = Rs. 10,000 × $\frac{6.4}{100}$

= Rs.640

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