7. Suppose you had Nu 25,000 to

invest in shares that are being sold at

par. How much more would you earn if

the shares paid a dividend rate of 30%

than if they paid a dividend rate of 5%?

Amount earn = NU 7,500

Amount earn = NU 1,250

Step-by-step explanation:

Given:

Investment amount = NU 25,000

Dividend rate = 30%

Dividend rate = 5%

Find:

Amount earn.

Computation:

⇒ Amount earn (Dividend rate = 30%)

Amount earn = Investment amount * Dividend rate

Amount earn = NU 25,000 * 30%

Amount earn = NU 7,500

⇒ Amount earn (Dividend rate = 5%)

Amount earn = Investment amount * Dividend rate

Amount earn = NU 25,000 * 5%

Amount earn = NU 1,250