Question

Each of ₹ 500 shares is available at a discount of ₹ 100. If the dividend on these shares is 8%, the income percent is ______.

Options

• 8%

• 15%

• 5%

• 10%

Answer 1

Each of ₹ 500 shares is available at a discount of ₹ 100. If the dividend on these shares is 8%, the income percent is 10%.

Explanation:

F.V of one share = ₹ 500

M.V of one share = ₹ 500 – ₹ 100 = ₹ 400

Rate of dividend = 8%

Suppose the rate of return = x%

∴ Income on M.V = Dividend on F.V

x% of ₹ 400 = 8% of ₹ 500

`\implies x/100 xx 400 = 8/100 xx 500`

`\implies` 4x = 40

`\implies` x = `40/4` = 10