Amit Kumar invests Rs 36,000 in buying Rs 100 shares at Rs 20 premium.

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%

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

Solution:

(i) M.V. of one share =
= Rs 120