Question

mr rajan invest rs 8000 in 7 %(rs100) shares at rs 80 . After a year he sold the share at rs 75 each and invested the proceeds including his dividend in 18 % (rs 25 ) share at rs 41 . Find (1) his dividend for 1st year (2) his annual income in the second year (3) percentage increase in his return on his original investment ​

Answer 1

Answer:

Step-by-step explanation:

1 .

Total investment = Rs. 8000

Face value of 1 share = Rs 100

Market value of 1 share = Rs 80

Dividend on 1 share = Rs. 7

Number of shares = 8000 /80

                               = 100

(1)  Dividend on 100 shares = Rs.700

S.P of 100 shares = Rs 75 × 100= Rs. 7500

sale proceed = Rs. 7500 + 700

                      = Rs. 8200

( Total investment on shares)

If face value of 1 share = Rs. 25

Market value of 1 share = Rs 41

Dividend on 1 share = 18 /100 × 25

                                 = Rs 4.50

Numbers of shares bought = 8200 / 41

                                             = 200

(2) Income in second year = 4.50 × 200

                                            = Rs. 900

(3) Increase Income = Rs. 900 -  Rs. 700

                                 = Rs 200

 Increase in percentage = 200/ 8000  × 100

                                          = 2.5 %