An investment of ₹ $8800$ is made on ₹ $100$ shares at $10\%$ premium paying $22\%$ dividend. Find the return percent on the investment and the dividend earned in one year.
Nominal value of $1$ share $= N.V = $ ₹ $100$
Market value of $1$ share $= M.V = $ ₹ $100 + $ ₹ $10 = $ ₹ $110$
Investment $=$ ₹ $8800$
$\therefore \;$ Number of shares bought $= \dfrac{\text{Investment}}{\text{M.V of 1 share}} = \dfrac{8800}{110}= 80$
Rate of dividend $= 22 \%$ (Given)
$\therefore \;$ Income (i.e. dividend) earned $=$ Number of shares $\times$ Rate of dividend $\times$ N.V
i.e. $\;$ Dividend earned $= 80 \times \dfrac{22}{100} \times 100 = $ ₹ $1760$
i.e. $\;$ ₹ $1760$ is the income obtained on investing ₹ $8800$
$\therefore \;$ Return $\%$ on investment $= \dfrac{1760}{8800} \times 100 = 20 \%$