4 man invests Rs 4800 in shares of a company which was paying 8% dividend at the time when a Rs 100 share cost Rs 160. Find his annual income from the shares.
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : ₹240
Total investment $= ₹4800$
Market value of one share $= ₹160$
∴ No. of shares $=\frac{₹4800}{₹160}=₹30$
Dividend on 1 share of $₹100 = ₹8$
∴ Man's annual income $=₹(30×8)$ $=₹240$