Multiple choice

Mr Ravi had invested Rs. 52,000 in 18% Rs. 200 shares at a premium of 30%. What is the total income of Mr. Ravi from the shares?

  1. Rs. 7,800

  2. Rs. 7,200

  3. Rs. 2,200

  4. Rs. 6,200

  5. Rs. 3,200
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Face value(F.V) of the share = Rs. 200 Market value of the share = 130% of Rs. 200 = Rs. 260 Total number of shares = Invested sum/Market value of the share = Rs. 52,000/260 = 200 shares Total Income = F.V of the share x Number of shares x Rate of dividend = 200 x 200 x 18/100 = Rs. 7,200

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