Question

A man invests Rs10080 in 6% hundred rupee shares at Rs 112.find his annual income.when the shares fall to Rs 96 he sells out the shares and invests the proceeds in 10% ten rupees shares at Rs 8.Find the change in his annual income

Answer 1

Answer:

Step-by-step explanation:

i have solved this problem in a very simple way and also shown the calculations .....

here , in the answr

r is dividnd %

M.V is mrket value

N.V is nominal value

M.R is money recived

F.V is face value

NOTE : FV is also known as NV

if ny prblm u face regarding this kindly commnt ill try to solve it ....

Answer 2

Answer:

Face value of each share = Rs 100

Market value of each share = Rs 112

Money invested by man = Rs 10080

& Rate of dividend = 6%

∴ Number of shares bought by him = Money invested/Market value of one share                                                       

 = 10080/112 = 90

Now, annual income on one share = 6100 × 100 = Rs 6

Therefore, annual income on 90 shares = Rs (90 × 6) = Rs 540

In 2nd case:

Money received by him on selling one share = Rs 96

then money received by him on selling 90 shares = Rs (90 × 96) = Rs 8640

Hence, money invested by him in 2nd case = Rs 8640

Now, Face value of each new share = Rs 10

Market value of each new share = Rs 8

& Rate of dividend = 10%

Hence, number of shares he bought in 2nd case = 86408 = 1080

Now, income on one share = 10 × 10100 = Re 1

then income of 1080 shares = Rs (1080 × 1) = Rs 1080

Hence, the change in his annual income = Rs 1080 − Rs 540 = Rs 540