Answer

Verified

440.4k+ views

**Hint:**You can solve the question using the formula, ${\text{Investment = n}} \times {\text{M}}{\text{.V}}{\text{.of one share}}$ where n is the number of the shares and M.V. is the market value (at which one share is sold) of share. You can find dividend by using formula, ${\text{Dividend = n}} \times \dfrac{{\text{r}}}{{100}} \times {\text{N}}{\text{.V}}{\text{. of one share}}$ where r is the rate and N.V. is the nominal value of the shares.

**Complete step-by-step answer:**Given, a man buys a total number of shares (n) =$200$, which are ten rupees shares. So the nominal value of one share (N.V.) =${\text{Rs}}.10$.Since the man buys ten rupees shares at the price of $212.50$then,

The market value of one share= the price at which the shares are bought - total nominal value

The market value of one share(M.V.) =$212.50 - 200 = 12.50$ Rs.

He receives the dividend of rate r=$8$ %. We have to find the amount of investment and the dividend received by him . For finding the investment, we will use the formula

$ \Rightarrow $ ${\text{Investment = n}} \times {\text{M}}{\text{.V}}{\text{.of one share}}$ Where n is the number of the shares and M.V. is the market value

On putting the given values in the formula and simplifying, we get-

$ \Rightarrow $ Investment $ = 200 \times 12.50 = 2500$

For the dividend we use the formula,

$ \Rightarrow {\text{Dividend = n}} \times \dfrac{{\text{r}}}{{100}} \times {\text{N}}{\text{.V}}{\text{. of one share}}$

On putting the given values in the formula and simplifying, we get-

$ \Rightarrow $ Dividend$ = 200 \times \left( {\dfrac{8}{{100}}} \right) \times 10 = 2 \times 8 \times 10 = 160$

**Hence, the amount invested by him is Rs.$2500$ and the dividend received by him is Rs.$160$.**

**Note:**Many students write the dividend formula as- ${\text{Dividend = n}} \times \dfrac{{{\text{r% }}}}{{100}} \times {\text{N}}{\text{.V}}{\text{. of one share}}$ which is wrong as $% $ means$\dfrac{1}{{100}}$ so either write the $% $sign or write$\dfrac{1}{{100}}$. The correct formula will be-

$ \Rightarrow {\text{Dividend = n}} \times {\text{r% }} \times {\text{N}}{\text{.V}}{\text{. of one share}}$ Which when simplified is written as-

$ \Rightarrow {\text{Dividend = n}} \times \dfrac{{\text{r}}}{{100}} \times {\text{N}}{\text{.V}}{\text{. of one share}}$

Recently Updated Pages

How many sigma and pi bonds are present in HCequiv class 11 chemistry CBSE

Mark and label the given geoinformation on the outline class 11 social science CBSE

When people say No pun intended what does that mea class 8 english CBSE

Name the states which share their boundary with Indias class 9 social science CBSE

Give an account of the Northern Plains of India class 9 social science CBSE

Change the following sentences into negative and interrogative class 10 english CBSE

Trending doubts

Difference between Prokaryotic cell and Eukaryotic class 11 biology CBSE

Differentiate between homogeneous and heterogeneous class 12 chemistry CBSE

Fill the blanks with the suitable prepositions 1 The class 9 english CBSE

Difference Between Plant Cell and Animal Cell

Which are the Top 10 Largest Countries of the World?

Write a letter to the principal requesting him to grant class 10 english CBSE

10 examples of evaporation in daily life with explanations

Give 10 examples for herbs , shrubs , climbers , creepers

Change the following sentences into negative and interrogative class 10 english CBSE