1.

Which is better investment: Rs.300 shares at Rs.320 thay pays a dividend of `10%`, or Rs.200 shares at Rs.215 that pays a dividend of `10%`?

Answer» Let the investment made in each case be Rs.`(320xx215)`
Case 1 : Rs.300 shares at Rs.320 paying a dividend of `10%`
Annual income from each share `=10%` of `300=(10)/(100)xx300="Rs."30`
`"Number of shares bought"=("Total investment")/("Market value of each share")=(320xx215)/(320)=215`
`rArr "Annual income from 215 shares "= Rs.(215xx30)=`Rs.6450.
Case 2 : Rs.200 shares at Rs.215 paying a dividend of `10%`
`"Annual inocme from each share"=10%" of 200"=(10)/(100)xx200="Rs."20`
`"Number of shares bought"=("Total investment")/("Market value of each share")=(320xx215)/(215)=320`
`therefore" Annual income from 320 shares "="Rs."(320xx20)=6400.`
So, it can observed that the same abount of investment is made in each case, but the income is more in the first case.
`therefore10%, "Rs.300 shares at Rs.320 is better investment."`


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