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Banking Shares Dividend

Description: This test will give you complete confidence of the chapters Banking and Shares,Dividends. This test will help you to solve any type of problems from the above said chapters.
Number of Questions: 20
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Tags: Maths Mathematics Class10 ClassX 10 X SSLC Shares Dividends Bank Banking Profit Loss ICSE Interest years months Saving bank pass book Banking and Shares Dividend Commercial Mathematics
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Ram Kumar opened a savings bank account in State Bank on 4th January of a year and closed the account on 9th November of the same year. Which of the following months will be considered by the bank to credit the interest?

  1. January to October

  2. January to December

  3. January to July

  4. January to November

  5. January to May


Correct Option: A
Explanation:

As per the banking rules, interest will not be credited for the month in which the account is closed.

In Ram's saving bank account, the amount qualified for paying interest of 4% for June and July are Rs. 4500 and Rs. 8500 respectively. Which of the following could be the interest paid by the bank to Ram for these months?

  1. Rs. 15

  2. Rs. 28.33

  3. Rs. 13.33

  4. Rs. 43.33

  5. Rs. 126.67


Correct Option: D
Explanation:

Total Amount qualified for June and July = Rs. 4500 + Rs. 8500 = Rs.13,000 Interest paid by bank to Ram for June and July  = (4% of Rs. 13,000) / 12 = Rs. 43.33

Which of the following is the market value of the share for Rs. 75 shares at a premium of 12%?

  1. Rs. 94

  2. Rs. 74

  3. Rs. 64

  4. Rs. 84

  5. Rs. 104


Correct Option: D
Explanation:

Market value of the share = (100 + 12)% of Rs. 75 = 112 x 75 / 100 = Rs. 84

Mrs. Radhika opened a saving bank account on 14th March of a year and closed it on 12th November of the same year. For how many months, will she receive interest from the bank?

  1. 12 months

  2. 8 months

  3. 7 months

  4. 6 months

  5. 11 months


Correct Option: C
Explanation:

Since the account is opened after 10th March, no interest will be credited for this month and also account is closed in November. Hence, no interest will be credited for this month either. Hence, number of months = April to October = 7 months

Which of the following is the total amount required to buy 200, Rs. 75 shares at a premium of 12%?

  1. Rs. 11,800

  2. Rs. 14,000

  3. Rs. 14,800

  4. Rs. 16,000

  5. Rs. 16,800


Correct Option: E
Explanation:

Market value of the share = (100 + 12)% of Rs. 75 = 112 x 75 / 100 = Rs. 84 Total amount required to buy 200 shares = Rs. ( 200 x 84) = Rs. 16,800

What is the total amount required to buy 150 shares, if the face value of the share is Rs. 45 and rate of premium is 16%?

  1. Rs. 1,830

  2. Rs. 7,830

  3. Rs. 5,830

  4. Rs. 783

  5. Rs. 2,830


Correct Option: B
Explanation:

Market value of the share = (100 + 16)% of Rs. 45 = Rs. 116 x 45/100 = Rs. 52.20 Total amount required to buy 150 such shares = Rs. (150 x 52.20) = Rs. 7,830

The balance as on 1st June in the saving bank account of Mr. Sandeep was Rs. 9,800. In the same month, he had made the following transactions: (1) He paid his telephone bill of Rs. 1,100 by cheque on 3rd June. (2) On 10th, he deposited Rs. 1,000 (3) On 14th, he withdrew Rs. 1,500.

Which of the following qualifies for crediting interest by the bank to Mr. Sandeep's account?

  1. Rs. 9,700

  2. Rs. 8,200

  3. Rs. 8,700

  4. Rs. 7,200

  5. Rs. 8,000


Correct Option: B
Explanation:

Qualifying amount = Rs. 9,800 - Rs. 1,100 + Rs. 1,000 - Rs. 1,500 = Rs. 8,200

Which of the following is the market value of the share, if the face value of the share is Rs. 45 and the premium rate is 16%?

  1. Rs. 32.20

  2. Rs. 52.20

  3. Rs. 42.80

  4. Rs. 92.20

  5. Rs. 12.20


Correct Option: B
Explanation:

Market value of the share = (100 + 16)% of Rs. 45 = Rs. 116 x 45 / 100 = Rs. 52.20

If Raju invests Rs. 24,000, and incurs dividend at 10% for the face value of Rs. 60 each in shares, quoted at Rs. 48 for one share, which of the following could be his income from shares?

  1. Rs. 4000

  2. Rs. 3000

  3. Rs. 5000

  4. Rs. 6000

  5. Rs. 1000


Correct Option: B
Explanation:

Number of shares = Sum invested/Market value of the share = Rs. 24,000/Rs. 48 = 500 Income = Face value of the share x Number of shares x Rate of dividend = Rs. 60 x 500 x (10/100) = Rs. 3000

The balance as on 1st June in the savings bank account of Mr.Sandeep was Rs. 9,800. In that same month, he had made following transactions: (1) He paid his telephone bill of Rs. 1,100 by cheque on 3rd June. (2) On 10th, he deposited Rs. 1,000 (3) On 14th, he withdrew Rs. 1,500

Which of the following is the interest credited by the bank for this month to his account, if the rate of interest is calculated at 4% per annum?

  1. Rs. 378

  2. Rs. 54.67

  3. Rs. 27.33

  4. Rs. 126

  5. Rs. 55.33


Correct Option: C
Explanation:

Qualifying amount for interest calculation = Rs. 9800 - Rs. 1100 + Rs. 1000 - Rs. 1500 = Rs. 8200 Interest paid by the bank for the month = (Rs. 8200 x 4)/(12 x 100) = Rs. 27.33

Mr Ravi had invested Rs. 52,000 in 18% Rs. 200 shares at a premium of 30%. What is the total number of shares bought by Mr Ravi?

  1. 400

  2. 250

  3. 222

  4. 200

  5. 180


Correct Option: D
Explanation:

Face value of one share = Rs. 200 Market value of the share = 130% of Rs. 200 = Rs. 260 Total number of shares = Invested sum/Market value of the share = Rs. 52,000/260 = 200 shares

Mr Ravi had invested Rs. 52,000 in 18% Rs. 200 shares at a premium of 30%. Which of the following is the percentage return on Mr Ravi's investment?

  1. 11.85%

  2. 12.85%

  3. 3.85%

  4. 13.85%

  5. 14.85%


Correct Option: D
Explanation:

Percentage Return = (Total income/Total investment) x 100 Face value(F.V) of the share = Rs. 200 Market value of the share = 130% of Rs. 200 = Rs. 260 Total number of shares = Invested sum/Market value of the share = Rs. 52,000/260 = 200 shares Total Income = F.V of the share X Number of shares X rate of dividend = 200 x 200 x 18/100 = Rs. 7,200 Percentage return = (7,200/52,000) x 100 = 13.85%

A steel organisation with 6,000 shares of nominal value of Rs. 150 each declares an annual dividend of 18%. What is the total dividend paid by the organisation?

  1. Rs. 2,62,000

  2. Rs. 1,62,000

  3. Rs. 62,000

  4. Rs. 4,62,000

  5. Rs. 16,200


Correct Option: B
Explanation:

Total value of 6,000 shares = 6000 x 150 = Rs. 9,00,000 Total amount of dividend = 18% of 9,00,000 = Rs. 1,62,000

Mr Ravi had invested Rs. 52,000 in 18% Rs. 200 shares at a premium of 30%. What is the total income of Mr. Ravi from the shares?

  1. Rs. 7,800

  2. Rs. 7,200

  3. Rs. 2,200

  4. Rs. 6,200

  5. Rs. 3,200


Correct Option: B
Explanation:

Face value(F.V) of the share = Rs. 200 Market value of the share = 130% of Rs. 200 = Rs. 260 Total number of shares = Invested sum/Market value of the share = Rs. 52,000/260 = 200 shares Total Income = F.V of the share x Number of shares x Rate of dividend = 200 x 200 x 18/100 = Rs. 7,200

A steel organisation with 6,000 shares of nominal value of Rs. 150 each declares an annual dividend of 18%. What is the annual income of Rahul who holds 98 shares in the organisation?

  1. Rs. 2,646

  2. Rs. 646

  3. Rs. 3,646

  4. Rs. 246

  5. Rs. 264


Correct Option: A
Explanation:

Income from each share = 18% of Rs. 150 = Rs. 27 Income from 98 shares = Rs. 27 x 98 = Rs. 2,646

Rohit opened a recurring deposit account in the bank by paying Rs. 250 per month for 11 months. The rate of interest is 9% per annum and the amount of interest is calculated at the end of each month. Which of the following could be the total interest accumulated after 11 months?

  1. Rs. 144.75

  2. Rs. 123.75

  3. Rs. 184.75

  4. Rs. 244.75

  5. Rs. 223.75


Correct Option: B
Explanation:

Interest accumulated on recurring deposit account = [P n (n + 1) r] / [2 x 12 x 100], where monthly installment, P = Rs. 250, number of months, n = 11, rate of interest, r = 9% Interest accumulated after 11 months but calculated at the end of every month = [250 x 11 x 12 x 9] / [2 x 12 x 100]  = Rs. 123.75

Rohit opened a recurring deposit account in the bank by depositing Rs. 250 per month for 11 months. The rate of interest is 9% per annum and the interest amount is calculated at the end of each month.

Which of the following could be the maturity value of the recurring deposit?

  1. Rs. 1,873.75

  2. Rs. 3,873.75

  3. Rs. 2,873.75

  4. Rs. 873.75

  5. Rs. 7,873.75


Correct Option: C
Explanation:

Interest accumulated on recurring deposit account = [P n (n + 1) r] / 2400, where, P = Rs. 250 , n = 11, r = 9%

Interest accumulated = [250 x 11 x 12 x 9] / 2400 = Rs. 123.75 Maturity value = Total amount deposited + Interest accumulated = (250 x 11) + 123.75 = Rs. 2,873.75

Which of the following is rate of interest given to Radha, if she receives the maturity amount of Rs. 6,455 from her recurring deposit account with the monthly deposit of Rs. 500 for one year?

  1. 24%

  2. 4%

  3. 14%

  4. 11%

  5. 2.4%


Correct Option: C
Explanation:

Interest accumulated = [P n (n + 1) r] / 2400, where P = Rs. 500, n = 12 months, r = ? Interest accumulated = 6,455 - (500 x 12)  = 6, 455 - 6,000 = 455 Now, by using above formula we get 455 = [500 x 12 x 13 x r] / 2400 r = 14%

Suma gets Rs. 7,725.00 at the end of two years from recurring deposit account at the rate of 7% per annum. Which of the following is her monthly instalment?

  1. Rs. 300

  2. Rs. 3,000

  3. Rs. 400

  4. Rs. 600

  5. Rs. 500


Correct Option: A
Explanation:

Interest accumulated = [P x n (n + 1) r] / 2400, where P = ?, n = 12 x 2 = 24 months and r = 7%

Interest accumulated = [P x 24 x 25 x 7] / 2400 = 1.75P Maturity amount = 24P + 1.75P 7,725 = 25.75P  Therefore,   P = Rs. 300

Deepak opened a recurring deposit account in a bank and deposited Rs. 500 per month for 3 years. If he will receive an amount of Rs. 24,000 at the time of maturity, what is the rate of interest?

  1. 11.62%

  2. 1.62%

  3. 10.62%

  4. 21.62%

  5. 2.62%


Correct Option: D
Explanation:

Interest accumulated on recurring deposit = [P n (n+1) r] / 2400, where, P = Rs. 500, n = (12 x 3) = 36 months, r = ? Interest accumulated = 24,000 - (500 x 36)  = 24,000 - 18,000 = Rs. 6,000 Therefore, by using above formula,  6000  = [500 x 36 x 37 x r] / 2400 6,000 = 277.5r r = 21.62%

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