A man bought 1000 shares each of face value Rs 5 at Rs 7 per share. At the end of the year, the company from which he bought the shares declared dividend of 8 percent. Calculate the amount dividend received.

₹400

The correct answer is option (3) : ₹400

No, of shares bought = $1000$

Market value of 1 share $= ₹7$

Dividend on 1 share of $₹5 = ₹\left(\frac{8}{100}×5\right)$ $=₹0.40$

∴ Amount of dividend on 1000 shares $=₹(1000×0.4)$ $= ₹400$