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Salman Buys 50 Shares of Face Value Rs. 100 Available at Rs. 132. (1) What is His Investment? (2) If the Dividend is 7.5%, What Will Be His Annual Income? (3) If He Wants to Increase His - Mathematics

Salman buys 50 shares of face value Rs. 100 available at Rs. 132.
(1) What is his investment?
(2) If the dividend is 7.5%, what will be his annual income?
(3) If he wants to increase his annual income by Rs. 150, how many extra shares
should he buy?

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Solution

Number of shares = 50

Market value (M.V.) of each share = Rs. 132

1) Salman's investment = M.V. of each share × Number of shares
= Rs. (132 × 50)
= Rs. 6600

2) Dividend on one share = 7.5% of Rs. 100 = Rs. 7.50

His annual income = 50 × Rs. 7.50 = Rs. 375

3) Salman wants to increase his income by Rs. 150

Income on one share = Rs. 7.50

Number of extra shares to be bought = `"Increase in annual income"/"Incomeon one share" = 150/7.50 = 20`

  Is there an error in this question or solution?
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