Ram got Rs. 1,500 as dividend from a company. What is the rate of interest given by the company?
(I) The dividend paid last year was 10%.
(II) Ram has 350 shares of Rs. 10 denomination.
(I) The dividend paid last year was 10%.
(II) Ram has 350 shares of Rs. 10 denomination.
- Statement I alone is sufficient to answer the question.
- Statement II alone is sufficient to answer the question.
- Both statements I and II together are necessary to answer the question.
- Both statements I and II together are not sufficient to answer the question.
The Correct Option is B
Solution and Explanation
To determine the rate of interest, we need to understand the relationship between the dividend received, the number of shares, and the dividend rate. The key equation here is:
Dividend = Number of Shares × Face Value of Each Share × Dividend Rate
From Statement II, we know:
1. Ram has 350 shares, each with a face value of Rs. 10.
This implies Ram owns shares worth Rs. 3,500 face value (350 shares × Rs. 10).
Since Ram received Rs. 1,500 as the dividend, we set up the equation:
1,500 = 350 × 10 × Dividend Rate
Solving for Dividend Rate, we get:
1,500 = 3,500 × Dividend Rate
Dividend Rate = 1,500 / 3,500
Dividend Rate = 0.4286 ≈ 42.86%
Thus, Statement II alone is sufficient to calculate the dividend rate. We do not require Statement I, as last year's rate does not impact the calculation for this year's dividend receipt.
Therefore, the correct answer is: Statement II alone is sufficient to answer the question.
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