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Mr. Parekh Invested Rs. 52,000 on Rs. 100 Shares at a Discount of Rs. 20 Paying 8% Dividend. at the End of Mium of Rs. 20. Find 1) the Annual Dividend 2) the Profit Earned Including His Dividend. - Mathematics

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Question

Mr. Parekh invested Rs. 52,000 on Rs. 100 shares at a discount of Rs. 20 paying 8% dividend. At the end of one year, he sells the shares at a premium of Rs. 20. find

1) The annual dividend

2) The profit earned including his dividend.

Solution

Rate of dividend = 8%
Amount invested = Rs. 52,000
Market price = Rs. 100 – Rs. 20 = Rs. 80
Number of shares purchased= Rs. (52,000)/ 80 = 650
(1) Annual dividend = 650 × 8 = Rs. 5200

(2) On selling market rate = Rs 100 + 20 = Rs 120
⇒ sale price = Rs. 120 × 650 = Rs. 78,000
Profit = Rs. (78,000 – 52,000) = Rs 26000
⇒Total gain = 26000 + 5200 = Rs 31200

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APPEARS IN

Selina Solution for Concise Mathematics for Class 10 ICSE (2020 (Latest))
Chapter 3: Shares and Dividend
Exercise 3(C) | Q: 16 | Page no. 38
2010-2011 (March) (with solutions)
Question 9.1 | 3.00 marks