Question

Ema bought 360, ₹10 shares paying 12% per annum. She sold them when the price rose to ₹21. She invested the proceeds in ₹5 shares paying 4.5% per annum at ₹3.50 per share. Find the change in her annual income.

Answer 1

Answer:ANSWER

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