A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being $13 \frac{1}{2}$ . The rate of interest obtained is:

A. $12 \frac{1}{2} %$

B. $13 \frac{1}{2} %$

C. 15%

D. $16 \frac{2}{3} %$

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Correct Answer : C.

Investment = Rs. [20 x (50 - 5)] = Rs. 900.
Face value = Rs. (50 x 20) = Rs. 1000.
Dividend =

R s . \frac{27}{2} \times \frac{1000}{100} = R s . 135 .

Interest obtained =

(\frac{135}{900} x 100) % = 15 %

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