Question

A man invests a certain sum on buying 15% Rs 100 shares at 20% premium. Find :
(1) His income from one share
(2) The number of shares bought to have an income, from the dividend, Rs 6480
(3) Sum invested

Answer 1

1) The dividend on one share = 15% of Rs 100

`= Rs (15/100 xx 100)`

= Rs 15

So the income from one share is Rs 15

2) Number of shares bought by the man

`=/"annual income"/"dividend om one share"`

` =6480/15`

= Rs 432

3) Since the man bought shares of Rs 100 at 20% premium, the market value of one share

`= Rs (1 + 20/100) xx 100 `

`= Rs  (120/100 xx 100)` 

= Rs 120

∴ His total ivestment = number of shares x market value of one share

= 432 x 120

= Rs 51840