1. Question: A man interested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the man gets 12.5% on his annual income is :

    A
    Rs. 534.60

    B
    Rs. 655.60

    C
    Rs. 648

    D
    Rs. 207.40

    Note: Number of shares` = (4455/8.25)` `= 540` Face value`= Rs. (540 xx 10)` `= Rs. 5400. Annual income` = Rs. (12/100 xx 5400)` ` = Rs. 648`
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  2. Question: A man buys Rs. 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investment, at what price did he buy the shares ?

    A
    Rs. 40

    B
    Rs. 48

    C
    Rs. 52

    D
    Rs. 37.50

    Note: Dividend on 1 shares `= Rs. (10/100 xx 50)` `= Rs. 5. Rs. 12.5 is an income on an investment of Rs. 100 Rs. 5 is an income on an investment of Rs. (100 xx 2/25 xx 5)` `= Rs. 40` :. Cost of 1 shares = Rs. 40
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  3. Question: A man buys Rs. 20 shares paying 9% dividend. If the man gets 6% interest on his money, the market value of each share is :

    A
    Rs. 54

    B
    Rs. 30

    C
    Rs. 13.33

    D
    Rs. 10.80

    Note: Dividend on each share` = Rs. (20 xx 9/100)` `= Rs. 1.80.` To have an income of Rs. 6, investment = Rs. 100 To have an income of Rs. 1.80, investment `= Rs. (100/6 xx 1.80)` `= Rs. 30`
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  4. Question: The market value of a 10.5% stock, in which an income of Rs. 756 is derived by investing Rs. 9000, brokerage being `1/4%,` is :

    A
    Rs. 124.75

    B
    Rs. 125.25

    C
    Rs. 108.25

    D
    Rs. 112.20

    Note: For an income of Rs. 756, investment = Rs. 9000 For an income of Rs.`21/2`, investment`= Rs. (9000/756 xx 21/2)` `= Rs. 125.` :. For a Rs. 100 stock investment = Rs. 125. Market value of Rs. 100 stock` = Rs. (125 - 1/4)` `= Rs. 124. 75.`
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