https://file.aiquickdraw.com/mathbot/file/1726499265256824iqdzb.jpg

The problem in the image asks:

**"How much should a person invest in ₹25 shares selling at ₹31 to obtain an income of ₹124, if the dividend declared is 12%?"**

### Given:
- **Nominal value of each share (Face value)** = ₹25
- **Market price of each share** = ₹31
- **Required income** = ₹124
- **Dividend rate** = 12%

### Solution:

1. **Dividend per share**: The dividend is calculated on the nominal value of the share, not the market price. Therefore, the annual dividend per share is:
   \[
   \text{Dividend per share} = \frac{12}{100} \times 25 = ₹3 \text{ per share}.
   \]

2. **Number of shares required**: The number of shares required to get an income of ₹124 can be calculated by dividing the required income by the dividend per share:
   \[
   \text{Number of shares required} = \frac{124}{3} \approx 41.33 \text{ shares}.
   \]
   Since a person cannot buy a fraction of a share, they would need to purchase at least **42 shares**.

3. **Investment required**: The investment required is the number of shares multiplied by the market price of each share:
   \[
   \text{Investment} = 42 \times 31 = ₹1302.
   \]

### Final Answer:
The person should invest **₹1302** in ₹25 shares selling at ₹31 to obtain an income of ₹124 if the dividend declared is 12%.

---

Would you like further details or have any questions?

Here are five related questions:
1. How does the dividend rate affect the required investment?
2. What happens if the market price of the shares fluctuates?
3. How would a change in the dividend percentage influence the outcome?
4. If the person wanted to receive a different income, how would the calculations change?
5. What is the difference between nominal value and market value?

**Tip:** Always verify if the required income is after tax or before tax, as this can affect the calculations.

How much should a person invest in ₹25 shares selling at ₹31 to obtain an income of ₹124, if the dividend declared is 12%?

Learn how to calculate the investment needed to obtain a specific income from shares with a 12% dividend. This problem covers key financial concepts, such as dividend per share, number of shares required, and the total investment. Suitable for students in Grades 8-10.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation