A man buys 400, twenty-rupee shares at a premium of `4rs` each and receives a dividend of `12%` . Find :
(i) the amount invested by him
(ii) his total income from the shares
(iii) percentage return on his money.

Answer

Let's solve the problem step by step.

### Given Data:
- Number of shares = 400
- Nominal value of each share = ₹20
- Premium on each share = ₹4
- Dividend percentage = 12%

### Step 1: Calculate the Amount Invested
The market value of each share can be calculated as follows:
\[ \text{Market Value of each share} = \text{Nominal Value} + \text{Premium} = 20 + 4 = 24 \text{ rupees} \]

Now, to find the total amount invested by the man, we multiply the market value of each share by the number of shares:
\[ \text{Amount Invested} = \text{Number of Shares} \times \text{Market Value of each share} = 400 \times 24 = 9600 \text{ rupees} \]

### Step 2: Calculate Total Income from the Shares
The total income from the shares is derived from the dividend. The dividend is calculated on the nominal value of the shares:
\[ \text{Total Dividend} = \text{Dividend Percentage} \times \text{Nominal Value of Total Shares} \]
First, we calculate the nominal value of the total shares:
\[ \text{Nominal Value of Total Shares} = \text{Number of Shares} \times \text{Nominal Value} = 400 \times 20 = 8000 \text{ rupees} \]

Now, we can calculate the total dividend:
\[ \text{Total Dividend} = \frac{12}{100} \times 8000 = 960 \text{ rupees} \]

### Step 3: Calculate Percentage Return on His Money
The percentage return can be calculated using the formula:
\[ \text{Percentage Return} = \left( \frac{\text{Total Income}}{\text{Amount Invested}} \right) \times 100 \]
Substituting the values we calculated:
\[ \text{Percentage Return} = \left( \frac{960}{9600} \right) \times 100 = 10\% \]

### Summary of Results:
(i) The amount invested by him = ₹9600
(ii) His total income from the shares = ₹960
(iii) Percentage return on his money = 10%

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