Ramesh buys `100rs` shares at `20rs` premium in a company paying `15%` dividend. Find (i) the market value of 600 shares , (ii) his annual income , (iii) his percentage income.

Answer

Let's solve the problem step by step.

### Given:
- Nominal value of the share = ₹100
- Premium = ₹20
- Dividend percentage = 15%
- Number of shares = 600

### Step 1: Calculate the Market Value of One Share
The market value of a share is calculated as:
\[ \text{Market Value} = \text{Nominal Value} + \text{Premium} \]
Substituting the values:
\[ \text{Market Value} = 100 + 20 = ₹120 \]

### Step 2: Calculate the Market Value of 600 Shares
To find the market value of 600 shares, we multiply the market value of one share by the number of shares:
\[ \text{Market Value of 600 Shares} = \text{Number of Shares} \times \text{Market Value} \]
Substituting the values:
\[ \text{Market Value of 600 Shares} = 600 \times 120 = ₹72,000 \]

### Step 3: Calculate the Annual Income
The annual income can be calculated using the formula:
\[ \text{Annual Income} = \left(\frac{\text{Dividend Percentage}}{100}\right) \times \text{Nominal Value} \times \text{Number of Shares} \]
Substituting the values:
\[ \text{Annual Income} = \left(\frac{15}{100}\right) \times 100 \times 600 \]
Calculating:
\[ \text{Annual Income} = 15 \times 600 = ₹9,000 \]

### Step 4: Calculate the Percentage Income
The percentage income is calculated using the formula:
\[ \text{Percentage Income} = \left(\frac{\text{Annual Income}}{\text{Market Value of 600 Shares}}\right) \times 100 \]
Substituting the values:
\[ \text{Percentage Income} = \left(\frac{9,000}{72,000}\right) \times 100 \]
Calculating:
\[ \text{Percentage Income} = \left(\frac{9}{72}\right) \times 100 = 12.5\% \]

### Final Answers:
(i) Market value of 600 shares = ₹72,000
(ii) Annual income = ₹9,000
(iii) Percentage income = 12.5%