Hi soheb dont worry i will explain u
face value is actual value of the share ie
he bought 20 shares at 50 rs
hence face value of 1 share is 50 rs
for 20 shares is 50*20 = 1000rs
now investment or market value is the value calculated after
giving the discount
here discount given is 5rs for 50 rs
so market value for 50 rs is 45 rs
hence market value for 20*50rs is 20*45 = 900rs
now, dividend is always calculated on
FACE VALUE(which is always constant)
so dividend is 13 1/2 is 27/2 % of face value
is dividend = (27/2)*1000 %
= 13500 %
= 13500/100 = 135 rs
now rate of interst = (dividend*100)/market value %
= (135*100)/900 %
15 %
my suggestion to u just go through the imp formulas .... twice
I think u will find some problem in understanding what i have
explained . but u go through the formulas and still u cant understand post ur doubt i will try to explain u the short cut method
Nirbhay said:
(Thu, Jan 6, 2011 12:01:13 PM)
I have understand.
Bhagyashri said:
(Sun, Aug 28, 2011 09:07:24 PM)
If 20 shares @50 rs then 20*50=1000....but discount rs5 then it will be 20 shares in 45 rs ie. 20*45=900...thus man saves rs 100..
dividend rate is 13 1/2 =27/2.
He got dividend on rs 1000 @27/2
if 1000 is 100%
then ? is 27/2%
by cross multyplication it will be 1000*27/2/100
=135
. The rate of interest obtained is:
