Practice | Hashtable

21. A man buys Rs. 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investment, at what price did he buy the shares ?

A. Rs. 35.50

B. Rs. 40

C. Rs. 48

D. Rs. 52

Discuss

Solution:

Dividend on 1 share
= Rs.

(\frac{10}{100} \times 50)

= Rs. 5
Rs. 12.50 is an income on an investment of Rs. 100
Rs. 5 is an income on an investment of :
= Rs.

(100 \times \frac{2}{25} \times 5)

= Rs. 40.
∴ Cost of 1 share = Rs. 40

22. A man invests in a 16% stock at 128. The interest obtained by him is ?

A. 8%

B. 12%

C. 12.5%

D. 16%

Discuss

Solution:

By investing Rs. 128, income derived = Rs. 16
By investing Rs. 100, income derived
= Rs.

(\frac{16}{128} \times 100)

= Rs. 12.5
∴ Interest obtained = 12.5%

23. A man invested Rs. 14400 in Rs. 100 shares of a company at 20% premium. If the company declares 5% dividend at the end of the year, then how much does he get ?

A. Rs. 500

B. Rs. 600

C. Rs. 650

D. Rs. 720

Discuss

Solution:

Number of shares
=

(\frac{14400}{120})

= 120
Face value
= Rs. (100 × 120)
= Rs. 12000
Annual income
= Rs.

(\frac{5}{100} \times 12000)

= Rs. 600

24. A wants to secure an annual income of Rs. 1500 by investing in 15% debentures of face value Rs. 100 each and available for Rs. 104 each. If the brokerage is 1%, then the sum of money he should invest is -

A. Rs. 10504

B. Rs. 10784

C. Rs. 15000

D. Rs. 19642

Discuss

Solution:

Income on each debenture
= 15% of Rs. 100
= Rs. 15
Number of debentures required
= Rs.

(\frac{1500}{15})

= Rs. 100
Cost of each debenture
= Rs. (104 + 1% of 104)
= (104 + 1.04)
= Rs. 105.04
∴ Total investment
= Rs. (105.04 × 100)
= Rs. 10504