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 numb

Answer 1

Given, Investment = Rs.36,000 

Face value = Rs.100 

Premium - Rs.20,

D=15%

Market Value of one share = Rs.(100 + 20) 

= Rs.120