A man invests Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. What is the dividend rate of the stock?

Given data

• Market price = Rs. 97 per Rs. 100 face value.
• Total outlay = Rs. 1552; income = Rs. 128.

Concept / Approach

• First find the nominal (face) value purchased, then deduce the dividend rate from the income.

Step-by-step calculation
Nominal purchased = (1552 / 97) × 100 = 1600 (since 97 × 16 = 1552)Let dividend rate be r%. Income = r% of 1600 = (r / 100) × 1600 = 16r16r = 128 ⇒ r = 8%

Verification
At 8% on Rs. 1600, income = 128 as given.

Final Answer
8%