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# By purchasing Rs 25 shares for Rs 40 each, a man gets a 4 percent profit on his investment. What rate percent is the company paying? What is his dividend if he buys 60 shares? - Mathematics

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#### Question

By purchasing Rs 25 shares for Rs 40 each, a man gets a 4 percent profit on his investment. What rate percent is the company paying? What is his dividend if he buys 60 shares?

#### Solution

Nominal value of 1 share = Rs 25

Market value of 1 share = Rs 40

Profit% on investment = 4%

Then profit on 1 share = 4% of Rs 40= Rs 1.60

∴ Dividend% = 1.60/25  × 100% = 6.4%

No. of shares purchased= 60

Then dividend on 60 shares = 60 × Rs 1.60 = Rs 96

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