Question

Sirish bought 100 shares of Rs. 80 at 8 discount. If the rate of the dividend is 10%, find the rate of interest obtained?​

Answer 1

shares bought by sirish = 100 of Rs. 80 with discount 8 then, investment of shares = 80 - 10% of 100 , = 80-(10/100)*100= 80-10= 70 ,now, total investment = 72 *8 =576 the dividend per share = 80*8/100= 6.4 , total dividend = 6.4*8 = 51.2 Then , interest = 51.2/ 576*100= 8.8