Question:Find the income derived from 88 shares of Rs.25 each at 5 premium, brokerage being `1/4` per share and the rate of dividend being `7 1/2`% per annum. Also, find the rate of interest on the investment. 

Answer Cost of 1 share` = Rs. (25 + 5 + 1/4)`

                      `= Rs. 121/4`

Cost of 88 shares` = Rs.(121/4 xx 88)`

                           `= Rs. 2662.`

:. Investment made` - Rs. 2662.`

Face value of 88 shares` = Rs. (88 xx 25)`

                                    `= Rs. 2200.`

Dividend on Rs.` 100 = 15/2.`

Dividend on Rs. 2200` = Rs. (15/2 xx 1/100 xx 2200)`

                                  `= Rs. 165.`

:. Income derived = Rs. 165.

Rate of interest on investment` = (165/2662 xx 100)`

                                           `= 6.2 %`. 

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