Find the annual income derived from 125, `120rs` shares paying `5%` dividend.

Answer

To find the annual income derived from 125 shares of ₹120 each, paying a 5% dividend, we can follow these steps:

### Step 1: Determine the nominal value of the shares
The nominal value of each share is given as ₹120.

### Step 2: Calculate the total nominal value of 125 shares
To find the total nominal value of the shares, we multiply the number of shares by the nominal value of each share:

\[ \text{Total Nominal Value} = \text{Number of Shares} \times \text{Nominal Value per Share} \]

\[ \text{Total Nominal Value} = 125 \times 120 = 15000 \text{ rupees} \]

### Step 3: Calculate the annual income from the dividend
The dividend is given as 5%. To find the annual income, we calculate 5% of the total nominal value:

\[ \text{Annual Income} = \left(\frac{5}{100}\right) \times \text{Total Nominal Value} \]

\[ \text{Annual Income} = \left(\frac{5}{100}\right) \times 15000 \]

\[ \text{Annual Income} = 750 \text{ rupees} \]

### Final Answer
The annual income derived from 125 shares paying a 5% dividend is **₹750**.

---