Calculate the annual return from investing Rs. 6800 in a 10% stock priced at 136.
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Answer: D. 500
Explanation
Dividing the total investment of six thousand eight hundred by the market price of one hundred thirty-six gives fifty stock units. Each unit of stock provides a nominal ten percent return based on its standard face value of one hundred. Multiplying the fifty purchased units by the ten-rupee annual dividend per unit yields a total return of five hundred. Stock units are purchased by dividing total capital by the prevailing market price per share unit. Annual dividends are distributed based on the face value of the stock, which is traditionally one hundred units. Total annual income equals the number of stock units owned multiplied by the dividend paid per unit.
Option A underestimates the total number of stock units acquired with the given investment capital. Option B represents an incorrect unit calculation that fails to match the purchase price division. Option C falls short of the correct annual return by miscalculating the number of purchased stock units.
- Subject
- Mathematics
- Category
- Mathematics
- Topic
- —
- Difficulty
- medium
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