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Calculate the Percentage Income in the Following Investment: - Mathematics

Sum

Calculate the percentage income in the following investment:

Rs 7,168 paying 15% when a Rs 80 share is available at 40% premium.

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Solution

Investment = Rs 7, 168 

Nominal value of each share =Rs 80 

Market value= Rs(80 + 40 % of Rs 80) =Rs (80+32) =Rs 112 

No. of shares purchased = `7168/112 = 64`

Face value of 64 shares =Rs 80 x 64 =Rs 5, 120 

Dividend = 15 %

Therefore, Annual Income =  `(15 xx 5120)/100` = Rs 768

Hence, percentage income = `(768 xx 100)/7168` = 10.71%

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APPEARS IN

Frank ICSE Class 10 Mathematics Part 2
Chapter 4 Shares and Dividends
Exercise 4.1 | Q 3.2 | Page 61
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