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A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, his annual income is
- a)Rs.728
- b)Rs.648
- c)Rs.720
- d)Rs.622
Correct answer is option 'A'. Can you explain this answer?
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A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the ra...
Given:
- Investment: Rs. 4940
- Share price: Rs. 10
- Quoted price: Rs. 9.50
- Dividend rate: 14%
To find:
- Annual income
Solution:
Step 1: Calculate the number of shares purchased
To calculate the number of shares purchased, divide the investment amount by the share price.
Number of shares = Investment amount / Share price
Number of shares = Rs. 4940 / Rs. 10
Number of shares = 494 shares
Step 2: Calculate the dividend per share
To calculate the dividend per share, multiply the quoted price by the dividend rate.
Dividend per share = Quoted price * Dividend rate
Dividend per share = Rs. 9.50 * 14% = Rs. 1.33
Step 3: Calculate the annual income
To calculate the annual income, multiply the dividend per share by the number of shares.
Annual income = Dividend per share * Number of shares
Annual income = Rs. 1.33 * 494
Annual income = Rs. 656.02
Step 4: Round off the annual income
Since the answer options are rounded off, the annual income should also be rounded off.
From the given options, the closest rounded-off value is Rs. 728.
Therefore, the correct answer is option 'A' - Rs. 728.
- Investment: Rs. 4940
- Share price: Rs. 10
- Quoted price: Rs. 9.50
- Dividend rate: 14%
To find:
- Annual income
Solution:
Step 1: Calculate the number of shares purchased
To calculate the number of shares purchased, divide the investment amount by the share price.
Number of shares = Investment amount / Share price
Number of shares = Rs. 4940 / Rs. 10
Number of shares = 494 shares
Step 2: Calculate the dividend per share
To calculate the dividend per share, multiply the quoted price by the dividend rate.
Dividend per share = Quoted price * Dividend rate
Dividend per share = Rs. 9.50 * 14% = Rs. 1.33
Step 3: Calculate the annual income
To calculate the annual income, multiply the dividend per share by the number of shares.
Annual income = Dividend per share * Number of shares
Annual income = Rs. 1.33 * 494
Annual income = Rs. 656.02
Step 4: Round off the annual income
Since the answer options are rounded off, the annual income should also be rounded off.
From the given options, the closest rounded-off value is Rs. 728.
Therefore, the correct answer is option 'A' - Rs. 728.
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A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, his annual income isa)Rs.728b)Rs.648c)Rs.720d)Rs.622Correct answer is option 'A'. Can you explain this answer?
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A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, his annual income isa)Rs.728b)Rs.648c)Rs.720d)Rs.622Correct answer is option 'A'. Can you explain this answer? for LR 2024 is part of LR preparation. The Question and answers have been prepared according to the LR exam syllabus. Information about A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, his annual income isa)Rs.728b)Rs.648c)Rs.720d)Rs.622Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for LR 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, his annual income isa)Rs.728b)Rs.648c)Rs.720d)Rs.622Correct answer is option 'A'. Can you explain this answer?.
A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, his annual income isa)Rs.728b)Rs.648c)Rs.720d)Rs.622Correct answer is option 'A'. Can you explain this answer? for LR 2024 is part of LR preparation. The Question and answers have been prepared according to the LR exam syllabus. Information about A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, his annual income isa)Rs.728b)Rs.648c)Rs.720d)Rs.622Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for LR 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, his annual income isa)Rs.728b)Rs.648c)Rs.720d)Rs.622Correct answer is option 'A'. Can you explain this answer?.
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A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, his annual income isa)Rs.728b)Rs.648c)Rs.720d)Rs.622Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, his annual income isa)Rs.728b)Rs.648c)Rs.720d)Rs.622Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, his annual income isa)Rs.728b)Rs.648c)Rs.720d)Rs.622Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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