What annual income can be earned by investing Tk. 10800 in 15% stock at 90?

Question: What annual income can be earned by investing Tk. 10,800 in 15% stock at 90?

Solution:
The market price of the stock is Tk. 90 for every Tk. 100 of face value.

∴ face value
= (100/90) × 10,800
= Tk. 12,000

The stock pays a dividend of 15% on its face value.

∴ annual income
= 15% of Tk. 12,000
= (15/100) × 12,000
= Tk. 1,800

Therefore, the annual income is Tk. 1,800.