Question

rakhee invested rs.12500 in shares of a company paying 6% dividend per annum.
If she bought rs.50 shares for rs.62.50, find her income from the investment.

Answer 1

Given :

The investment amount = Rs 12500

The dividend percentage = d% = 6%

The market value = M.V = Rs 50

The nominal value = N.V = Rs 62.50

To Find :

Annual income from investment

Solution :

∵ Number of share = $\dfrac{Investment amount}{market value}$

Or,  N = $\dfrac{12500}{50}$

          = 250

Again

Annual Income = dividend% × Nominal value × number of share

                         = d% × N.V × N

                         = 6% × Rs 62.50 × 250

                         = $\dfrac{6}{100}$ × Rs 62.50 × 250

                         = Rs 937.5

Hence, The Annual income from the investment is Rs 937.5   Answer