Q2 of 55 Page 102

Amol purchased 50 shares of Face Value Rs. 100 when the Market value of the share was Rs. 80. Company had given 20% dividend. Find the rate of return on investment.

Given FV = Rs. 100; MV = Rs. 80; D = 20%


On investment of Rs. 80, Amol got Rs. 20.


Let rate of return be x%.


∴


⇒


∴ x =


⇒ x = 25% (Rate of Return)


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