Sirat has got $500$ shares of Rs $125$ each of a company paying $12%$ dividend. Find net income of her after paying $5%$ of income tax.

Solution: –

According to the given question-

Number of shares $= 500$

Nominal value of each share = ₹ $125$

Face value of $500$ shares = ₹ $(125 × 500)$

= ₹ $62,500$

Rate of dividend $= 12%$

Therefore, total dividend $= (62,500 × 12)/100$

= ₹ $7,500$

Given, rate of income tax $= 5%$

Total tax = ₹ $(5 × 7500)/100$

= ₹ $375$

Therefore, net income $= ₹(7,500 – 375)$

= ₹ $7,125$