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Karan Buys 125 Shares of Rs 100 Each of 'Reliance Technologies Ltd.' Which Pays a Dividend of 6%. He Buys Them at Such a Price that He Gets 4% of His Money. - Mathematics

Sum

Karan buys 125 shares of Rs 100 each of 'Reliance Technologies Ltd.' which pays a dividend of 6%. He buys them at such a price that he gets 4% of his money. At what price did Karan buy the share?

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Solution

Let Karan's investment be x.

Face value of 125 shares = Rs ( 100 x 125) = Rs 12,500 

Dividend for 125 shares = 6 %  of 12,500J = Rs `(6 xx 12500)/100` = Rs 750

He gets Rs 750 as dividend which is equal to 4°/o of money invested 

⇒ `(4 x)/100` = Rs 750

⇒ 4 x = Rs 75000 

⇒ x = Rs `75000/4`

⇒ x = Rs 18750

Hence, Karan invested Rs 18,750. 

No. of shares bought by Karan = 125 

Value of a share = Rs `18750/125` = Rs 150

Karan bought a share for Rs 150. 

Concept: Shares and Dividends Examples
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APPEARS IN

Frank ICSE Class 10 Mathematics Part 2
Chapter 4 Shares and Dividends
Exercise 4.2 | Q 5 | Page 63
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