How many of shares of Rs.1000 each owned by Upendra?

Question

Upendra's net income from 5% Government paper is Rs.1225 after paying an income tax at the rate of 2%. Find the number of shares of Rs.1000 each owned by him.

Answer 1

Let the number of shares =x
Then Total amount of shares =1000x
Income on shares(5%)=1000x*(5/100)=50x=I(1)
Income tax on I(1) =(2%)={(1000x)*(5/100)}*(2/100)=x=I(2)
Net income (I) =I(1)-(2)
1225=50x-x
x=25
Ans is 25 shares