6. Gopal has some 100 shares of company A,
paying 10% dividend. He sells a certain number
of these shares at a discount of 20% and invests
the proceeds in Rs100 shares at *Rs60 of company
B paying 20% dividend. If his income, from the
shares sold, increases by 18,000, find the
number of shares sold by Gopal.
Answers
Let the number of shares the man sold be x
N.V of share = Rs 100
Rate of dividend = 10%
Dividend on each share = 10% of Rs 100 = Rs 10
So the dividend on x shares = Rs 10 x X = Rs 10x
Selling price of each share = Rs 100 - 20% of Rs 100= Rs 80
Amount obtained on selling x shares = Rs 80 x X = Rs 80x
The proceeds he invested in Rs 100 shares at Rs 60 of company B paying 20% dividend
N.V of share = Rs 100
M.V of each share = Rs 60 = Rs 60
Number of shares bought by the man =
Amount invested
M.V of each share
Amount investedM.V of each share
=
80
x
60
=80x60
=
4
x
3
=4x3
Dividend on each share = 20% of Rs 100 = Rs 20
Total dividend received = Dividebd on each share x Number of shares
=
20
×
4
x
3
=20×4x3
=
80
x
3
=80x3
Increase in the income = Rs 18000
⇒
80
x
3
−
10
x
=
18000
⇒80x3-10x=18000
⇒
50
x
3
=
18000
⇒50x3=18000
x
=
R
s
1080
x=Rs1080
Hence the number of shares sold by Gopal is Rs 1080.