By investing Rs8000 in the shares of a company, Uzma earned an income of Rs750, the dividend being 15%.If the face value of each shares in Rs100,find
a.the market price of each share,and
b.the rate percent which she earned on the investment
To find the market price of each share and the rate percent earned on the investment, we can use the following steps:
Step 1: Calculate the total dividend earned:
The dividend earned is given as 15% of the investment. To calculate this, we multiply the investment amount by the dividend percentage:
Dividend = Investment * Dividend Percentage
Dividend = Rs8000 * (15/100)
Dividend = Rs1200
Step 2: Calculate the number of shares owned:
Since the face value of each share is Rs100, we can calculate the number of shares owned by dividing the investment amount by the face value:
Number of shares = Investment / Face Value
Number of shares = Rs8000 / Rs100
Number of shares = 80
Step 3: Calculate the market price of each share:
The market price of each share can be calculated by dividing the total dividend by the number of shares:
Market price of each share = Dividend / Number of shares
Market price of each share = Rs1200 / 80
Market price of each share = Rs15
Step 4: Calculate the rate percent earned on the investment:
The rate percent earned on the investment can be calculated by dividing the dividend by the investment amount and multiplying by 100:
Rate percent = (Dividend / Investment) * 100
Rate percent = (Rs1200 / Rs8000) * 100
Rate percent = 15%
Therefore, the answers are:
a. The market price of each share is Rs15.
b. The rate percent earned on the investment is 15%.