Stocks and Shares Practice Test 1

Question : 24 of 40

Marks: +1, -0

Find the rate of interest of 100 shares of Rs 10 each at 4 premium and

1/ 4

brokerage per share and the rate of dividend being 10% per annum.

Solution:

Face value of 100 shares = 100 × 10 = Rs 1,000
Annual income =

10/100× 1,000

= Rs 100
Total investment

= [(10+4+1/4)×100]

= 14.25 × 100 = 1,425
Rate of interest on investment

=100/1425×100≈ 7%

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