Question

Mr. Anil Buys 500, 20 shares at a discount of 20% and receives a return of
10% on his money. Calculate
(i) the amount invested by him.
(ii) the rate of dividend paid by the company.
(iii) the annual dividend.

Answer 1

Answer:

8000

8percent

800

Step-by-step explanation:

m.v.= 20- (20/100×20) =16

Amount invested = no. of shares × m.v.= 500×16=8000

m.v. × return percent = n.v. × dividend percent

16 × 10/100 = 20 × r/100

r= 8 percent

Annual dividend = 500 × 20 ×8/100= 800

Answer 2

Answer:

( i ) The Amount invested is Rs 8,000

( i i ) The rate dividend paid by company is 8%

( i i i ) The Amount dividend is Rs 800  

Step-by-step explanation:

Given as :

The cost of share = Rs 500

Total number of shares = 20

The return percentage =  10%

According to question

Let The Amount invested = Rs A

The rate divided paid = r %

( i )

m.v.= number of share - (discount % × number of share )

Or, m.v = 20 - ( $\dfrac{20}{100}$  × 20 )

i.e m . v = 20 - 4 = 16

So, Amount invested = no. of shares × m.v.

i.e  A = 500 × 16 = 8000

∴   Amount = Rs 8000

Again From formula

( ii )

m.v. × return percent = n.v. × dividend percent

i.e 16 × $\dfrac{10}{100}$  = 20 × $\dfrac{r}{100}$

Or, 16 × 10 = 20 × r

∴   r = $\dfrac{160}{20}$

i.e rate = 8%

Now,

( iii ) Annual dividend = share cost × number of share × rate %

i.e  Annual dividend = 500 × 20 × $\dfrac{8}{100}$

∴  Annual dividend = Rs 800

Hence, ( i ) The Amount invested is Rs 8,000

           ( i i ) The rate dividend paid by company is 8%

           ( i i i ) The Amount dividend is Rs 800  . Answer