Find the income derived form 44 shares of Rs. 25 each at

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Find the income derived form 44 shares of Rs. 25 each at 5 premium (brokerage 1/4 per share ), the rate of dividend being 5%. Also find the rate of interest in the investment ?

1. Rs. 60.5, 4.55 %
2. Rs. 60, 5%
3. Rs. 80.5, 5.55 %
4. None of these

Correct Option: A

Cost of shares = 44(25 + 5 + 1/4) = Rs. 1331
∴ Investment made = Rs. 1331
Now, face value of 1 share = Rs. 25
∴ Face value of 44 shares = Rs. (44 x 25) = Rs. 1100

Now, dividend on Rs. 100 = Rs. 11/2
∴ Dividend on Rs. 1100 = Rs. [(11/2) / 100] x 1100 = Rs. 60.50

Also, income on investment of Rs. 1331 = Rs. 60.50
∴ Income on investment of Rs. 100 = Rs. (60.50 / 1331) x 100 = 4.55%