Question

Sachin invests rupees 8500 in 10%rupees 100 shares at 170.He sells out the shares when the price rise by rupees 30 and then invested the proceeds in 12% ruppees 100 shares at 125..
Find his sale proceeds
The no of rupees 125 shares he buys
Change in annual income

Answer 1

Selling price =170+30=₹200

i) sale proceeds = selling price* no. Of shares

No. Of shares=8500/170=50

Sale Proceeds=200*50=₹10,000

ii) number of ₹125 shares= sales proceeds/N.V

No. Of shares= 10000/125=80

iii) first a.i.=10*100*50/100=₹500

Second a.i=12*80*100/100=₹960

Change in a.i.=(Second a.i.)-(first a.i.)=960-500=₹460

The annual income increases by ₹460.

Answer 2

Answer:

Given : Sachin invests rupees 8500 in 10%rupees 100 shares at 170.He sells out the shares when the price rise by rupees 30 and then invested the proceeds in 12% ruppees 100 shares at 125.

To find :

1) His sale proceeds

2) The no of rupees 125 shares he buys  

3) Change in annual income

Solution :

Total selling price = 170+30= Rs.200

Sachin investment = Rs.8500

$\text{Number of shares}=\frac{8500}{170}=50$

New value = 125

1) Sale proceeds

$\text{Sale proceed}=\text{selling price}\times \text{ no. of shares}$

Substitute the value,

$\text{Sale proceed}=200\times 50$

$\text{Sale proceed}=10000$

2) The no of rupees 125 shares he buys  

$\text{Number of 125 shares}=\frac{\text{Sale proceed}}{N.V}$

$\text{Number of 125 shares}=\frac{100000}{125}$

$\text{Number of 125 shares}=80$

3) Change in annual income

First annual income  

$A_1=\frac{10\times 100\times 50}{100}=500$

Second annual income  

$A_2=\frac{12\times 100\times 80}{100}=960$

Change in income is

$C=A_2-A_1$

$C= 960-500$

$C=460$

The annual income increases by ₹460.