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Mr. Devendra invested ₹ 8,000 in 7% hundred rupee share at ₹ 80. After a year he sold these share at ₹ 75 each and invested in 18% twenty five-rupee shares at ₹ 41 each. Then his annual income from the second investement is:-

Solution

✅ Correct Option: 3

He buys 8000/80=1008000/80=100 shares and earns a dividend of 100×7=₹700100\times 7=₹700, then sells them for ₹7500₹7500. The proceeds of ₹8200₹8200 buy 8200/41=2008200/41=200 shares whose dividend is 18%18\% of ₹25₹25, that is ₹4.50₹4.50 each, giving 200×4.5=₹900200\times 4.5=₹900.

Note: The question does not state that the first year's dividend is reinvested; we have included it, as only that reading produces a listed figure.

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