Aman invests a sum of money in Rs 100 shares, paying 15% dividend quoted at 20% premium. If his annual dividend is Rs 540, calculate his total investment.

₹4320

The correct answer is option (1) : ₹4320

₹100 share is quoted at 20% premium means ₹100 share can be bought for ₹120

Hen income is ₹15, the investment = ₹120

When income is 540, the investment $= ₹\left(\frac{120}{15}×540\right)$

$=₹4320$