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A man invests Rs. 4500 in shares of a company which is paying 7.5% dividend. If Rs. 100 shares are available at a discount of 10%, find (i) the number of shares he purchases. (ii) his annual income.
A man invests Rs. 4500 in shares of a company which is paying 7.5% dividend. If Rs. 100 shares are available at a discount of 10%, find (i) the number of shares he purchases. (ii) his annual income.
Class 10 | Exercise 1 | ICSE | Maths | ML Aggarwal | Shares and Dividends
A man invests Rs. 4500 in shares of a company which is paying 7.5% dividend. If Rs. 100 shares are available at a discount of 10%, find (i) the number of shares he purchases. (ii) his annual income.

 

According to ques,,

Investment

\[=\text{ }Rs.\text{ }4500\]

Face value of each share

\[~=\text{ }Rs.\text{ }100\]

Discount

= 10% and rate of dividend

\[=\text{ }7.5%\]

The market price of each share

\[=\text{ }Rs.\text{ }\left( 100\text{ }\text{ }25 \right)\]

\[=\text{ }Rs.\text{ }75\]

(i) The number of shares he purchases

\[=\text{ }4500/75\text{ }=\text{ }60\]

(ii) Dividend

\[=\text{ }Rs.\text{ }7.5%\text{ }of\text{ }\left( 60\text{ }x\text{ }100 \right)\]

\[=\text{ }Rs.\text{ }450\]

Hence, his annual income will be:

\[~Rs.\text{ }450.\]

i

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