Question

A man bought 360 ten-rupee shares paying 12% per annum. He sold them when the price
1
rose to 21 and invested the proceeds in five-rupee shares paying 4-% per annum at
2
* 3.5 per share. Find the annual change in his income.
[ICSE 1984)
7​

Answer 1

Step-by-step explanation:

In the 1st case-

No of shares =360

N.V of 1 share =Rs.10

Rate of dividend =12%

∴Income on 1 share =12% of 10 =

100

12

×10=Rs.1.2

⇒Total income=360×1.2=Rs.432

Now he sell all the shares for Rs.21 each

∴Money obtained by selling all the 360 shares=360×21=Rs.7560

In the 2nd case-

Sum invested =Rs.7560

N.V of 1 share =Rs.5

Rate of dividend =4.5%

M.V of 1 share =Rs.3.50

∴No. of share=

3.50

7560

=2160

Dividend on 1 share =4.5% of Rs. 5 =

100

4.5

×5=Rs .225

⇒Total income=2160×.225=Rs.486

∴Change in income=Rs.486−Rs.432=Rs.54

Answer 2

Answer:

thanks for free points