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A Man Invests Rs 1,680 in Buying Shares of Nominal Value ₹ 24 and Selling at 12% Premium. the Dividend on the Shares is 15% per Annum - ICSE Class 10 - Mathematics

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Question

A man invests Rs 1,680 in buying shares of nominal value ₹ 24 and selling at 12% premium. The dividend on the shares is 15% per annum. Calculate:

1) the number of shares he buys;

2) the dividend he receives annually.

 

Solution

Nominal value of 1 share = Rs 24

Market value of 1 share = Rs 24+ 12% of Rs 24

= ₹ 24+ Rs 2.88= Rs 26.88

Total investment = Rs 1,680

∴ No of shares purchase = `1680/26.88 = 62.5`

Nominal value of 62.5 shares = 62.5 x 24= Rs 1,500

Dividend = 15% of Rs 1500

`= 15/100 xx 1500 = "Rs"  225`

  Is there an error in this question or solution?

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Solution A Man Invests Rs 1,680 in Buying Shares of Nominal Value ₹ 24 and Selling at 12% Premium. the Dividend on the Shares is 15% per Annum Concept: Shares and Dividends.
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