Question

Rasika bought Rs. 40 shares at a discount of 40%. Find the income, if she invests Rs.12000 in these shares and receives a dividend at the rate of 11% on the nominal value of the shares.

Answer 1

Given,

the Face value of the shares (F.V.) = ₹ 40

Discount = 40%

∴ The market value of the shares (M.V.)

= `40 - (40 xx 40/100)`

= 40 - 16

= ₹ 24

Rasika invests ₹ 12,000 in these shares.

∴ Number of shares bought by Rasika

= `" Amount invested"/"Market value of one share"`

= `12000/24`

= 500

Dividend = 11%

∴ Annual income on one share = `11/100 xx 40`

= ₹ 4.4

∴ Rasika’s income on 200 such shares

= 500 × 4.4

= ₹ 2200

∴ Rasika earns  ₹ 2200 from her investment