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.
Answer & explanation
Correct answer: option 1
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 $= ₹\left(\frac{120}{15}×540\right)$
$=₹4320$