A man bought 40 shares of Tk. 50 at 5tk discount, the rate of dividend being 27%. The rate of interest obtained is-

Question: A man bought 40 shares of Tk. 50 at 5tk discount, the rate of dividend being 27%. The rate of interest obtained is-

Solution:
Given,
Total investment = Tk. [40 × (50 - 5)] = Tk. 1800.
Face value = Tk. (50 × 40) = Tk. 2000.

∴ Dividend = (27/100) × 2000
= Tk. 540

∴ Interest obtained = (540/1800) × 100%
= 30%