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
Rs.728
Rs.648
Rs.720
Rs.622
Explanation:
Market Value of a share = Rs.9.50
Investment = Rs.4940
Number of shares =$\dfrac {4940}{9.50}$ = 520
Face Value of a share = Rs.10
Dividend = 14%
Dividend per share = $\dfrac{(10 \times 14)}{100}$ = Rs. 1.4
His annual income = 520 × 1.4 = Rs.728