by purchasing rupees 50 gas shares for rupees 80 each, a man gets 4% profit on his investment. what rate percent is company paying? what is dividend if he buys 200 shares

Solution
The man gets 4% profit on his investment, therefore

Income on 1 share of market value Rs 80 = 4% of Rs 80 =$\frac{4}{100}\times Rs.80$ = Rs.$\frac{16}{5}$

Nominal value of 1 share = Rs 50

∴ On Rs 50, company pays Rs $\frac{16}{5}$
$\Rightarrow$ On Rs. 100, company pays Rs. $\frac{16}{5}\times \frac{100}{50}=Rs.\frac{32}{5}$

Hence, the rate % paid by the company is $6\frac{2}{5}\%$

Income on one share = Rs $\frac{16}{5}$
Therefore, income on 200 share = Rs. $\frac{16}{5}\times 200=Rs.640$