Ravi invested Rs 6250 in shares of a company paying 6% per annum. If he bought Rs 25 share for Rs 31.25 each, find his annual income from this investment.
Answer & explanation
Correct answer: option 3
The correct answer is option (3) : ₹300
Total investment $=₹6250$
Market value of one share $=₹31.25$
∴ No. of shares $=\frac{₹6250}{₹31.25}$
Now, dividend on one share of ₹25 $=₹\left(\frac{6}{100}×25\right)=₹1.5$
∴Ravi's annual income $=₹(200×1.5)$
$=₹300$