Question

Gopal has some Rs 100 shares of company A, paying 10% dividend. He sells a certain number of these shares at a discount of 20% and invests the proceeds in Rs 100 shares at Rs 60 of company B paying 20% dividend. If his income, from the shares, sold, increases by Rs 18,000, find the number of shares sold by Gopal.

Answer 1

Let the number of shares the man sold be x

N.V of share = Rs 100

Rate of dividend = 10%

Dividend on each share = 10% of Rs 100 = Rs 10

So the dividend on x shares = Rs 10 x X = Rs 10x

Selling price of each share = Rs 100 - 20% of Rs 100= Rs 80

Amount obtained on selling x shares = Rs 80 x X = Rs 80x

The proceeds he invested in Rs 100 shares at Rs 60 of company B paying 20% dividend

N.V of share = Rs 100

M.V of each share  = Rs 60 = Rs 60

Number of shares bought by the man =` "Amount invested"/"M.V of each share"`

`= (80x)/60`

`= (4x)/3`

Dividend on each share = 20% of Rs 100 = Rs 20

Total dividend received = Dividebd on each share x Number of shares

`= 20 xx (4x)/3`

`= (80x)/3`

Increase in the income = Rs 18000

`=> (80x)/3 - 10x = 18000`

`=> (50x)/3 = 18000`

`x = Rs 1080`

Hence the number of shares sold by Gopal is Rs 1080.