Find the income derived from 88 shares of Rs. 25 each at 5 premium, brokerage being (1/4) per share and the rate of dividend being 7(1/2) % per annum.

A. 150
B. 165
C. 180
D. 201

Cost of 1 share = Rs. [25+5+1/4)] = Rs. (121/4).
Cost of 88 shares = Rs.[(121/4)*88] = Rs. 2662.

Investment made = Rs. 2662.

Face value of 88 shares = Rs. (88*25) = Rs. 2200.

Dividend on Rs. 100 = (15/2).

Dividend on Rs. 2200 = Rs. [(15/20*(1/100)*2200] = Rs. 165.

Income derived = Rs. 165.

Correct Answer: B. 165 ✔

Last Updated: October 07, 2019