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A man buys 500, Rs. 10 shares at a premm...

A man buys 500, Rs. 10 shares at a premmum of Rs. 3 on each share. If the rate of dividend is 12%, then the rate of interest received by him money is ________ (approximately).

A

`6.5 %`

B

`7.5 %`

C

`9.23 %`

D

`5%`

Text Solution

Verified by Experts

The correct Answer is:
C
(i) Rate of dividend `xxFV=MVxx` Rate of return
(ii) In the given dta, rate of interest is same as the rate of return.
(iii) `FVxx` Rate of dividend `=MVxx` Rate of return.
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