Question

A man invests ₹ 24000 on ₹ 60 shares at a discount of 20%. if the dividend declared by the company is 10%, then his annual income is

Options

• ₹ 3000

• ₹ 2880

• ₹ 1500

• ₹ 1440

Answer 1

Investment = ₹ 24000
F.V. of each share = ₹ 60
M.V. at discount of 20% = `60 xx (80)/(100)`= ₹ 48
Rate of dividend = 10%

∴ Face value of all the share = `(500 xx 60)/(48)`
= ₹ 30000
Annual dividend = ₹ `(30000 x 10)/(100)`

= ₹ 3000.