1 | 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. 37.50 B. Rs. 48 C. Rs. 40 D. Rs. 52 Answer : C. Rs. 40 Explanation: Dividend on 1 share = Rs. \(({10 \over 100 } \times 50 )\)= Rs. 5 Rs. 12.50 is an income on an investment of Rs.100. Rs. 5 is an income on an investment of Rs. \((100 \times {2 \over 25} \times 5)\)= Rs. 40 ∴ Cost of 1 share = Rs. 40. |
2 | Santosh invests a part of Rs. 12,000 in 12% stock at Rs. 120 and the remainder in 15 % stock at Rs. 125. If his total dividend per annum is Rs. 1360,how much does he invest in 12 % stock at Rs. 120 ? A. Rs. 4000 B. Rs. 5500 C. Rs. 4500 D. Rs. 6000 Answer : A. Rs. 4000 Explanation: Let investment in 12% stock be Rs. x. Then, investment in 15% stock =Rs. \((12000-x)\) \({12 \over 120} \times x +{15 \over 125} \times (12000-x)=1360\) =>\({x \over 10}+{3 \over 25}(12000-x)=1360.\) => \(5x+72000-6x=1360 \times 50\) =>\(x=4000\) => |
3 | Rs. 9800 are invested partly in 9% stock at 75 and 10% stock at 80 to have equal amount of incomes.The investment in 9% stock is : A. Rs. 4600 B. Rs. 4800 C. Rs. 5000 D. Rs. 5200 Answer : C. Rs. 5000 Explanation: Let the investment in 9% stock be Rs. x. Then,investment in 10% stock = Rs. \((9800-x).\) \({9\over75}\times x={10 \over 80} \times (9800-x)\) => \({3x \over 25}= {9800-x \over 8 }\) =>\(24x=9800 \times 25 -25x \) =>\(49x=9800 \times25\) =>\(x=5000\) |
4 | A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. What is the market value of each share? A. 18 B. 12 C. 15 D. 21 Answer : C. 15 Explanation: Face value of each share = Rs.20 Dividend per share = 9% of 20 = \({{9 \times 20} \over 100}={9 \over 5}\) He needs to have an interest of 12% on his money ie, Money Paid for a share x \({12 \over 100}={9 \over 5 }\) Money Paid for a share = \({9 \over 5} \times {100 \over 12 }=15\) ie, Market Value of the share = Rs.15 |
5 | A man invested Rs.1552 in a stock at 97 to obtain an income of Rs.128. What is the dividend from the stock? A. 7.5% B. 8% C. 9.7% D. None of these Answer : B. 8% Explanation: By investing Rs.1552, income = Rs.128 By investing Rs.97, income = \({{128 \times 97 } \over 1552 } =8\) ie, dividend = 8% |
6 | The cost price of a Rs. 100 stock at 4 discount, when brokerage is \({1 \over 5}\%\) is A. 96.2 B. 96.25 C. 97.25 D. 97.5 |
7 | In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of A. 3100 B. 6240 C. 6500 D. 9600 Answer : B. 6240 Explanation: Market Value = Rs. 96. Required Income = Rs. 650. Here face value is not given. Take face value as Rs.100 if it is not given in the question To obtain Rs.10 (ie,10% of the face value 100), investment = Rs.96 To obtain Rs.650, investment = \({96 \over 10 } \times 650 = 6240\) |
8 | By investing in \(6{2\over 3}\%\) stock at 64, one earns Rs. 1500. The investment made is A. 5640 B. 5760 C. 5760 D. 9600 Answer : C. 5760 Explanation: Market Value = Rs.64 Face Value is not given and hence take it as Rs.100 \(16{2 \over3 }\%\) of the face value = \(50 \over 3\) ie, to earn \(50 \over 3\) investment = Rs. 64 Hence, to earn Rs.1500, investment needed = \({{64 \times 3 \times 1500 } \over 50 } = 5760\) |