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Solution for Mr.Tiwari. Invested Rs 29,040 in 15% Rs 100 Shares Quoted at a Premium of 20%. Calculate: (1) the Number of Shares Bought by Mr Tiwari. (2) Mr. Tiwari’S Income from the Investment. (3) the Percentage Return on His Investment. - ICSE Class 10 - Mathematics

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Question

Mr.Tiwari. invested Rs 29,040 in 15% Rs 100 shares quoted at a premium of 20%. Calculate:
(1) the number of shares bought by Mr Tiwari.
(2) Mr. Tiwari’s income from the investment.
(3) the percentage return on his investment.

Solution

Total investment = Rs 29,040

Nominal value of 1 share = Rs 100

Market value of 1 share = Rs 100+ 20% of Rs 100

= Rs 100 + Rs 20 = Rs 120

∴ No of shares purchsed = `29040/120 = 242` shares

Nominal value of 242 shares = Rs 100 x 242 = Rs 24,200

Dividend% = 15%

Dividend = 15% of Rs  24,200

`=15/100 xx 24200 = Rs 24200`

`= 15/100 xx 24200 = Rs 24200`

`"income%" = "income"/"investment" xx 10`

`= 3630/29040 xx 100%`

= 12.5%

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Solution for question: Mr.Tiwari. Invested Rs 29,040 in 15% Rs 100 Shares Quoted at a Premium of 20%. Calculate: (1) the Number of Shares Bought by Mr Tiwari. (2) Mr. Tiwari’S Income from the Investment. (3) the Percentage Return on His Investment. concept: Shares and Dividends. For the course ICSE
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