Ameer invests Rs.24,200 in buying Rs.100 shares of a company avilable at a premium of `10%`. If the company pays a dividend of `15%`, then find the number of shares bought by Ameer, and the rate of return on his investment.

Ameer invests Rs.24,200 in buying Rs.100 shares of a company avilable

1.	Ameer invests Rs.24,200 in buying Rs.100 shares of a company avilable at a premium of `10%`. If the company pays a dividend of `15%`, then find the number of shares bought by Ameer, and the rate of return on his investment.
Answer» Face value of each share = Rs.100 The shares are available at a permium of `10%`, i.e., `10%` of 100 - Rs.10. Market value of each share = Rs.(100 + 10) = Rs.110 Money invested = Rs.24,200 `"Number of shares bought"=("Total investment")/("Market value of each share")` `=(24200)/(110)=220` `"Dividend paid "=15%` `"Annual income from each share "=15%" of 100 = Rs. 15"` `rArr" Annual income from 220 shares"="Rs."(220xx15)="Rs."3300` `"The rate of return on his investment "=("Annual income")/("Investment")xx100%` `=(3300)/(24200)xx100%` `=(150)/(11)%=13(7)/(11)%` `therefore" Ameer gets a return of "13(7)/(11)%" per annum on his investment".`

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Ameer invests Rs.24,200 in buying Rs.100 shares of a company avilable at a premium of `10%`. If the company pays a dividend of `15%`, then find the number of shares bought by Ameer, and the rate of return on his investment.

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