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A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being $$13\frac{1}{2}$$. The rate of interest obtained is:
Answer & Solution
Correct Answer:
Option
C
$$\eqalign{
& {\text{Investment}} \cr
& = Rs.\,\left[ {20 \times \left( {50 - 5} \right)} \right] \cr
& = Rs.\,900. \cr
& {\text{FaceValue}} \cr
& = Rs.\,\left( {50 \times 20} \right) \cr
& = Rs.\,1000. \cr
& {\text{Dividend}} \cr
& = Rs.\,\left( {\frac{{27}}{2} \times \frac{{1000}}{{100}}} \right) \cr
& = Rs.\,135. \cr
& {\text{Interest}}\,{\text{Obtained}} \cr
& = \left( {\frac{{135}}{{900}} \times 100} \right)\% \cr
& = 15\% \cr} $$
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