Question

Sukanya holds ₹8000 of 3% stock.She sells it at ₹110 and invests the proceeds in 5% stock. There by her income increases by ₹260 .Find the market price of 5% stock.

Answer 1

Answer:

Number of shares bought by Vivek =

15

4500

=300 share

So,

Dividend=

100

300×10×8

=240Rs.

1) Sales proceeds = Number of shares * Price=300×30=9000 Rs.

2) Number of Rs. 125 share =

125

9000

=72 shares

3) Dividend from new shares=

100

72×100×12

=864 Rs.

So,

Change in income =864−240=624 Rs.