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Question
Each of ₹ 500 shares is available at a discount of ₹ 100. If the dividend on these shares is 8%, the income percent is ______.
Options
8%
15%
5%
10%
Solution
Each of ₹ 500 shares is available at a discount of ₹ 100. If the dividend on these shares is 8%, the income percent is 10%.
Explanation:
F.V of one share = ₹ 500
M.V of one share = ₹ 500 – ₹ 100 = ₹ 400
Rate of dividend = 8%
Suppose the rate of return = x%
∴ Income on M.V = Dividend on F.V
x% of ₹ 400 = 8% of ₹ 500
`\implies x/100 xx 400 = 8/100 xx 500`
`\implies` 4x = 40
`\implies` x = `40/4` = 10
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