mrs kakaria invests Rs.9800 in a company paying a dividend of 8% per annum when a share of face value Rs.100 stands at Rs.140. What is his annual income? If he sells 50% of her shares when the price rises to Rs.180,what is her gain in this transaction?
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Kakarayya Actually who is he
jerushas:
A person,who means l don't know
If u know that sum plz answer
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Find the number of shares Mrs Kakaria owned:
Number of shares bought = 9800 ÷ 140 = 70
Find the dividends:
Dividends are paid on face value
1 share = 8% of Rs 100 = 0.08 x 100 = Rs 8.00
70 shares = 8 x 70 = Rs 560
⇒ Annual income = Rs 560
Find the gain from selling 50% of the shares:
Number of shares sold = 50% of 70 = 0.5 x 70 = 35
Gain on 1 share = 180 - 140 = Rs 40
Gain on 35 shares = 40 x 35 = Rs 1400
⇒ Total Gain = Rs 1400
Answer: Annual income = Rs 560, Gain = Rs 1400
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