How to do the sum ( a man invests rs 10080 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 rupee shares at rs 8. find his change in the annual income?
Answers
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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
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☺☺☺hope it helps u! !
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