Q.A man invests ₹36,000 in buying ₹100 shares of a company at a market price of ₹120 each. If the company pays a dividend of 15%, find

The number of shares comes from dividing the money invested by the market price, while the income comes from the dividend, which is reckoned on the face value.

He buys 300 shares at ₹120 each, and each ₹100 share earns ₹15 of dividend, giving his annual income.

Given: Amount invested $P = ₹36{,}000$, face value $FV = ₹100$, market price $MP = ₹120$, dividend rate $r = 15\%$.

1. Number of shares. The cost of investment is based on the market price:

   $\text{Number of shares} = \dfrac{P}{MP} = \dfrac{36000}{120} = 300 \text{ shares}$

2. Annual income. The dividend per share is reckoned on the face value:

   $\text{Dividend per share} = \dfrac{15}{100}\times100 = ₹15$

   $\text{Annual income} = \text{Number of shares}\times\text{Dividend per share} = 300\times15 = ₹4{,}500$

   ✓Final answer

   He buys 300 shares and receives an annual income of ₹4,500.

Cross-check by yield. The yield on this investment is $\dfrac{r\times FV}{MP} = \dfrac{15\times100}{120} = 12.5\%$. Applying this yield to the amount invested: $\dfrac{12.5}{100}\times36000 = ₹4{,}500$, which matches the income found above — confirming both the number of shares and the income are consistent.

A frequent slip is computing the dividend as 15% of ₹120 (the price paid) rather than 15% of ₹100 (the face value), giving a wrong ₹18 per share. The market price sets how many shares you can buy; the face value sets the dividend.