A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13$ \dfrac{1}{2} $. The rate of interest obtained is:
12$ \dfrac{1}{2} $%
13$ \dfrac{1}{2} $%
15%
16$ \dfrac{2}{3} $%
Explanation:
Investment = Rs. $[20 \times (50 - 5)]$ = Rs. 900.
Face value = Rs. $(50 \times 20)$ = Rs. 1000.
| Dividend = Rs.$ \left(\dfrac{27}{2} \times\dfrac{1000}{100} \right) $= Rs. 135. |
| Interest obtained =$ \left(\dfrac{135}{900} \times 100\right) $%= 15% |