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Question
Amit Kumar invests Rs 36,000 in buying Rs 100 shares at Rs 20 premium. The dividend is 15% per annum. Find :
(i) The number of shares he buys
(ii) His yearly dividend
(iii) The percentage return on his investment.
Give your answer correct to the nearest whole number.
Solution
Investment = Rs.36000
Face value = Rs.100
Premium = Rs.20, dividend = 15%
(i) No. of shares
= `(36000)/(120)`
= 300
(ii) DIvidend
= 15% of (100 x 300)
= ₹4500
(iii) % Return
= `(4500)/(36000) xx 100`
= `(450)/(36)`
= 12.5%
= 13%.
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