Sachin invests rupees 8500 in 10% , rupees 100 shares at rupees 170. He sells the shares when the price of each share rose by rupees 30. He invests the proceeds in 12% rupees 100 shares at rupees 125. Find:
(I) the sale proceeds
(ii) the number of rupees 125 shares.
(iii) the change in annual income
Answers
Answer:
see the image
Step-by-step explanation:
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Answer:
Sales proceeds = Rs 10000
The number of Rs 125 shares = 80
Change in annual income = Rs 700
Step-by-step explanation:
Given,
Purchased price of 1 share = Rs. 170
Total he invested = Rs 8500
So,
Number of shares for Rs 8500 = 8500/170 = 50
Dividend = 10% of ( Number of shares * Price of each share )
Dividend = 10 % of ( 50 * 100 )
Dividend = Rs 500
Since,
He sold the shares when the price rose by Rs 30 ;
Selling price of each share = 170 + 30 = Rs 200
Therefore,
( i ) Sales proceeds of selling 50 share :
= 200 × 50 = Rs. 10000
Hence,
Sales proceeds = Rs 10000
( ii ) Number of new Rs.125 shares purchased :
= 10000 / 125 = 80
Hence,
The number of Rs 125 shares = 80
( iii ) Change in annual income :
Dividend = 12 % of ( Number of Rs 125 shares * Price of each share )
Dividend = 12 % of ( 80 * 125 )
Dividend = Rs 1200
Change in income = 1200 - 500 = Rs 700
Hence,
Change in annual income = Rs 700