Question

Amit invested a certain sum of money in ₹ 100 shares, paying a 7.5% dividend. The rate of return on his investment is 10%. The money invested by Amit to purchase 10 shares is ______.

पर्याय

• ₹ 250

• ₹ 750

• ₹ 900

• ₹ 1100

Answer 1

Amit invested a certain sum of money in ₹ 100 shares, paying a 7.5% dividend. The rate of return on his investment is 10%. The money invested by Amit to purchase 10 shares is ₹ 750.

Explanation:

Dividend per ₹ 100 share

= 7.5% of 100

= ₹ 7.50 

Rate of return = `"Dividend"/"Market price"`

= 10% 

⇒ Market price = `7.5/0.10`

= ₹ 75 per share

For 10 shares:

75 × 10 = ₹ 750