A man ivests `11200rs` in a company paying 6 percent per annum when its `100rs` shares can be bought for `140rs` Find :
(i) his annual dividend
(ii) his percentage return on his investment

Answer

To solve the problem step by step, we will find the annual dividend and the percentage return on the investment.

### Step 1: Identify the given values
- Total investment = ₹11,200
- Nominal value of one share = ₹100
- Market value of one share = ₹140
- Dividend rate = 6% per annum

### Step 2: Calculate the number of shares purchased
To find the number of shares purchased, we use the formula:

\[ \text{Number of shares} = \frac{\text{Total investment}}{\text{Market value of one share}} \]

Substituting the values:

\[ \text{Number of shares} = \frac{11200}{140} = 80 \]

### Step 3: Calculate the nominal value of the shares purchased
The nominal value of the shares purchased can be calculated as:

\[ \text{Nominal value of shares} = \text{Number of shares} \times \text{Nominal value of one share} \]

Substituting the values:

\[ \text{Nominal value of shares} = 80 \times 100 = 8000 \]

### Step 4: Calculate the annual dividend
The annual dividend can be calculated using the formula:

\[ \text{Annual dividend} = \text{Dividend rate} \times \text{Nominal value of shares} \]

Substituting the values:

\[ \text{Annual dividend} = 6\% \times 8000 = \frac{6}{100} \times 8000 = 480 \]

### Step 5: Calculate the percentage return on investment
The percentage return on investment can be calculated using the formula:

\[ \text{Percentage return} = \left(\frac{\text{Annual dividend}}{\text{Total investment}}\right) \times 100 \]

Substituting the values:

\[ \text{Percentage return} = \left(\frac{480}{11200}\right) \times 100 = \frac{480 \times 100}{11200} = 4.29\% \]

### Final Answers:
(i) His annual dividend = ₹480
(ii) His percentage return on investment = 4.29%

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