Find the income derived from 88 s of Rs. 25 each at 5 premium, brokerage being (1/4) per and the rate of dividend being 7(1/2) % per annum.
A. 150
B. 165
C. 180
D. 201
Cost of 1 = Rs. [25+5+1/4)] = Rs. (121/4).
Cost of 88 s = Rs.[(121/4)*88] = Rs. 2662.
Investment made = Rs. 2662.
Face value of 88 s = Rs. (88*25) = Rs. 2200.
Dividend on Rs. 100 = (15/2).
Dividend on Rs. 2200 = Rs. [(15/20*(1/100)*2200] = Rs. 165.
Income derived = Rs. 165.