A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13 1/2. The rate of interest obtained is:

1.

A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13 1-div-1by2 . The rate of interest obtained is:

[A].	12 1/2 %
[B].	13 1/2 %
[C].	15%
[D].	16 2/3 %

Answer: Option C

Explanation:

Investment = Rs. [20 x (50 - 5)] = Rs. 900.

Face value = Rs. (50 x 20) = Rs. 1000.

Dividend = Rs.		27	x	1000		= Rs. 135.
		2		100

Interest obtained =		135	x 100	%	= 15%
		900

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