Question

Mr. Tiwari invested Rs 29,040 in 15% Rs 100 shares at a premium of 20%. Calculate:
(i) The number of shares bought by Mr. Tiwari.
(ii) Mr. Tiwari’s income from the investment.
(iii) The percentage return on his investment.

Answer 1

(i) M.V. of one share  = `[20/100 xx 100 + 100]`
= Rs.120
No. of shares

= `"Investment"/"M.V. of 1 share"`

= `₹(29040)/(120)`
= ₹242
(ii) Income
= 242 x 15
= ₹3,630
(iii) ∵ rate %

= `"dividend"/"M.V." xx 100`

= `(15)/(120) xx 100`
= 12.5%.