Question Details

A man invested 20,000 in some shares in the ratio 2:3:5 which pay dividends of 10%, 30% and 20%, respectively, on the investments in that year. Find the total dividend income of the man.

Options

A

₹4200

B

₹4500

C

₹4800

D

₹5000

Show Answer

Correct Answer :

Option A

₹4200

Solution :

The correct answer is ₹4200.

The man invests a total of ₹20,000 across three types of shares in the ratio 2 : 3 : 5. The dividends earned are 10%, 30%, and 20% on each respective investment. We need to find the total dividend income.

Step 1: Find the total number of ratio parts.

Total parts = 2 + 3 + 5 = 10 parts

Step 2: Calculate the actual amount invested in each share.

Share 1 (ratio part = 2):
Investment1 = 210 × 20,000 = ₹4,000

Share 2 (ratio part = 3):
Investment2 = 310 × 20,000 = ₹6,000

Share 3 (ratio part = 5):
Investment3 = 510 × 20,000 = ₹10,000

Step 3: Calculate the dividend income from each share.

Dividend from Share 1 (10% on ₹4,000):
10100 × 4,000 = ₹400

Dividend from Share 2 (30% on ₹6,000):
30100 × 6,000 = ₹1,800

Dividend from Share 3 (20% on ₹10,000):
20100 × 10,000 = ₹2,000

Step 4: Add all the dividend incomes to get the total.

Total Dividend = ₹400 + ₹1,800 + ₹2,000

= ₹4,200

Therefore, the total dividend income of the man is ₹4,200, which confirms the correct answer.

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