A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13. The rate of interest obtained is:

Question:
A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13. The rate of interest obtained is:

[A].

12	1	%
	2

[B].

13	1	%
	2

[C].

15%

[D].

16	2	%
	3

Answer: Option C

Explanation:

Investment = Rs. [20 x (50 – 5)] = Rs. 900.

Face value = Rs. (50 x 20) = Rs. 1000.

Dividend = Rs.		27	x	1000		= Rs. 135.
		2		100

Interest obtained =		135	x 100	%	= 15%
		900