Question

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?

Answer 1

Face value of one share i.e. (that is) NV = ₹100

So, the total investment = ₹12500

For the first share, Market value (MV)= ₹140 at 6%

=> Dividend = 6% of NV = (6/100)×100 =₹6

So, let x be the amount invested in the first share

Thus, Income from the first share = (6/140)×x = 3x/70

Therefore, the amount invested in the second share will be ₹(12500-x)

For the second share, the Market value (MV) = ₹125 at 5%

=> Dividend = 5% of NV = (5/100)×100 =₹5

So, the income from the second share = (5/125)×(12500-x)

= ₹(12500-x)/25

It is given that, the total income from the two shares =₹520

Therefore, the total income from both the shares = (3x/70)+(12500-x)/25 = 520

Therefore, the equation becomes:-

3x/70-x/25+12500/25 =520

3/70-x/25 =20

x/5×(3/14-1/5) =20

x=100/((15-14)/70)

x=100×70 =7000

So, the amount invested in the first share=₹7000

and the amount invested in the second share= ₹(12500–7000)=₹5500