A man invest Rs 12,500 partly in shares of face value of Rs 100 each paying 6% at Rs 140 and the remaining in shares paying 5% at Rs 125. If his total income is Rs 520 .How much he has invested in each?
Answers
Face value of one share i.e. NV = Rs.100
Total investment = Rs.12500
For first share, Market value MV = Rs140 at 6%
= > Dividend = 6% of NV = (6/100)*100 = Rs.6
Let X be the amount invested in first share
Income from first share = (6/140) * X = 3X/70
Therefore, amount invested in second share will be (12500-X)
For second share, Market value MV = Rs125 at 5%
= > Dividend = 5% of NV = (5/100)*100 = Rs.5
Income from second share = (5/125)* (12500-X)
= (12500-X) / 25
It is given that, total income from two shares = Rs.520
Therefore, Total income from both shares = (3X/70) + (12500-X) / 25 = 520
3X/70 - X/25 + 12500/25 = 520
3X/70 - X/25 = 20
X/5 * (3/14 - 1/5) = 20
X= 100 / ((15-14)/70)
X= 100 * 70 = 7000
Amount invested in first share = Rs.7000
Amount invested in second share = 12500 – 7000 = Rs.5500