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A Man Invests Rs 7,770 in a Company Paying 5% Dividend When a Share of Nominal Value of Rs 100 Sells at a Premium of Rs 5. Find: 1) The Number of Shares Bought; 2) Annual Income; 3) Percentage Income. - Mathematics

Sum

A man invests Rs 7,770 in a company paying 5% dividend when a share of nominal value of Rs 100 sells at a premium of Rs 5. Find:

1) the number of shares bought;

2) annual income;

3) percentage income.

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Solution

Total money invested = Rs 7,770

Nominal value of 1 share = Rs 100

Market value of 1 share = Rs 100 + Rs 5 = Rs 105

∴ No. of shares purchased = `7770/105 = 74`

Nominal value of 74 shares = `74 xx 100 = "Rs" 7400`

Annual income = 5% of Rs 7400

`= 5/100 xx 74000`

= Rs 370

Income% = `370/7770 xx 100% = 4.76%`

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APPEARS IN

Selina Concise Maths Class 10 ICSE
Chapter 3 Shares and Dividend
Exercise 3 (A) | Q 8 | Page 29
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