Mr Kumar invests Rs 36000 in buying Rs 100 shares at 10 % discount . he sold the shares at 20 % premium the dividend is 15% p.a. Find
(i) the no. of shares he bought 
(ii) his early dividend 
(iii) the percent of ROI 
 

Answer :

Given  : Mr Kumar invests Rs 36000 in buying Rs 100 shares at 10 % discount . So

Purchase price  of a share  =  100 - 10%  of 100 =  100 - $\frac{10 }{100}\times 100$ = 100 - 10 =  Rs . 90

i ) Number of share  = $\frac{\mathrm{Amount} \mathrm{invested}}{\mathrm{Purchase} \mathrm{price} / \mathrm{share}}$ , So

Total number of share  = $\frac{36000}{90}$ =  400                              ( Ans ) 

ii ) He sold the shares at 20 % premium the dividend is 15% p.a., So

Nominal value of a share  =  90  + 20% of 90  =  90   + $\frac{20 \times 90}{100}$ = 90 + 18 =  Rs .108
Dividend  = $\frac{15}{100}\times 400\times 108 = 15 \times 4 \times 108$ = Rs. 6480                                         ( Ans ) 

iii ) Rate of interest ( ROI ) = $\frac{\mathrm{Dividend} \mathrm{received} \mathrm{annually}}{\mathrm{Total} \mathrm{invested}} \times 100$ , So

ROI  = $\frac{6480}{36000}\times 100 = 0 .18 \times 100$ = 18%                                                    ( Ans )