Question

Aishwarya bought 496, Rs. 100 shares at Rs. 132 each, find:

1. investment made by her.
2. income of Aishwarya from these shares, if the rate of dividend is 7.5%.
3. how much extra must aishwarya invest in order to increase her income by Rs. 7,200?

Answer 1

i. N.V of each share = Rs. 100

M.V of each share = Rs. 132

Investment made by her = 496 × 132 = Rs. 65,472

ii. Dividend on 1 share = 7.5% of Rs. 100 = Rs. 7.5

So, income of Aishwarya from these shares = 496 × 7.5 = Rs. 3,720

iii. If she wants to increase her income by Rs. 7,200

The number of shares she should buy = `"Increase in the income"/"Income of one share"`

= `7200/7.5`

= Rs. 960

So, she should invest = 960 × 132 = Rs. 1,26,720