Question

Mr.Amol purchased 50 shares of Face Value rupees 100 when the Market value of the share was rupees 80. Company had given 20% dividend. Find the rate of return on investment. Solve the word problem

Answer 1

Answer:

the rate of return on investment. = 25%

Step-by-step explanation:

Mr.Amol purchased 50 shares of Face Value rupees 100 when the Market value of the share was rupees 80.

Purchased 50 shares at Rs 80 per share

=> Investment = 50 * 80  = Rs 4000

Face Value of a share =  Rs 100

Dividend = 20%

Dividend on 1 share = (20/100) * 100 = Rs 20

Dividend on 50 Shares = 50 * 20 = Rs 1000

Return on on investment = Rs 1000

& Amount invested = Rs 4000

Rate of Return on investment   = (1000/4000) * 100 = 25 %

the rate of return on investment. = 25%