Multiple choice

An investor invests Rs. 36000 in buying hundred rupees shares at a discount of 10%. After three days, he sells 100 shares at a premium of Rs. 10. He retains the rest for a year. The company declared a dividend of 12%. The net percentage of profit earned by him is

  1. 50 / 3%

  2. 20%

  3. 140 / 9%

  4. 160 / 9%

  5. 121 / 20%
Reveal answer Fill a bubble to check yourself
C Correct answer
AI explanation

The investor buys shares at a 10% discount, meaning the market value is Rs. 90, and he secures a profit of Rs. 10 per share for 100 shares sold, totaling Rs. 1000. With 400 total shares, the dividend earned is 400 * 12 = Rs. 4800, creating a total return of Rs. 5800 on the Rs. 36000 investment. The net profit percentage is (5800 / 36000) * 100, which simplifies to 140 / 9%.

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