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Question
Amit invested a certain sum of money in ₹ 100 shares, paying a 7.5% dividend. The rate of return on his investment is 10%. The money invested by Amit to purchase 10 shares is ______.
Options
₹ 250
₹ 750
₹ 900
₹ 1100
MCQ
Fill in the Blanks
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Solution
Amit invested a certain sum of money in ₹ 100 shares, paying a 7.5% dividend. The rate of return on his investment is 10%. The money invested by Amit to purchase 10 shares is ₹ 750.
Explanation:
Dividend per ₹ 100 share
= 7.5% of 100
= ₹ 7.50
Rate of return = `"Dividend"/"Market price"`
= 10%
⇒ Market price = `7.5/0.10`
= ₹ 75 per share
For 10 shares:
75 × 10 = ₹ 750
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