Salman buys 50 shares of face value `100rs` available at `132rs`
(i) What is his investment ?
(ii) If the dividend is `7.5%` what will be his annual income ?
(iii) If he wants to increase his annual income by `150rs` how many extra shares should be buy ?

Answer

Let's solve the problem step by step.

### Given Information:
- Face Value of each share = ₹100
- Market Value of each share = ₹132
- Number of shares bought = 50
- Dividend = 7.5%

### (i) What is his investment?

**Step 1:** Calculate the total investment.

The investment can be calculated using the formula:
\[ \text{Investment} = \text{Market Value of each share} \times \text{Number of shares} \]
Substituting the values:
\[ \text{Investment} = 132 \, \text{Rs} \times 50 = 6600 \, \text{Rs} \]

**Answer:** Salman’s investment is ₹6600.

### (ii) If the dividend is 7.5%, what will be his annual income?

**Step 2:** Calculate the dividend per share.

The dividend per share can be calculated as:
\[ \text{Dividend per share} = \left(\frac{\text{Dividend Percentage}}{100}\right) \times \text{Face Value} \]
Substituting the values:
\[ \text{Dividend per share} = \left(\frac{7.5}{100}\right) \times 100 = 7.5 \, \text{Rs} \]

**Step 3:** Calculate the annual income.

The annual income can be calculated using the formula:
\[ \text{Annual Income} = \text{Number of shares} \times \text{Dividend per share} \]
Substituting the values:
\[ \text{Annual Income} = 50 \times 7.5 = 375 \, \text{Rs} \]

**Answer:** Salman’s annual income is ₹375.

### (iii) If he wants to increase his annual income by ₹150, how many extra shares should he buy?

**Step 4:** Determine the number of extra shares needed.

To find the number of extra shares, we can use the formula:
\[ \text{Number of extra shares} = \frac{\text{Increase in annual income}}{\text{Dividend per share}} \]
Substituting the values:
\[ \text{Number of extra shares} = \frac{150}{7.5} = 20 \]

**Answer:** Salman should buy 20 extra shares to increase his annual income by ₹150.

### Summary of Answers:
(i) Investment = ₹6600
(ii) Annual Income = ₹375
(iii) Extra Shares Needed = 20