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Question
Bhavana invested Rs 20,000 and Rs 25,000 in buying shares of 'Bharati Telecom' and 'Satyam Infoways' which later declared dividend of 10% and 12.5% respectively. After collecting the dividends Bhavana sells all her shares at a loss of 4% and 5% respectively on her investments. Find her total earnings.
Solution
Total investment= Rs (20,000+25,000) =Rs 45,000
Dividend given by 'Bharati Telecom' = 10 % = Rs `(10 xx 20000)/100` = Rs 2000
Dividend given by 'Satyam Infoways' = 12.5 % =
Rs `(12.5 xx 25000)/100` = Rs `(125 xx 25000)/(10 xx 100)` = Rs 3125
Total dividend earned= Rs (2,000+3,125) =Rs 5,125
Money earned by selling shares of 'Bharati Telecom'
= Rs (20,000 - 4°/o of Rs 20,000)= Rs (20,000-800) =Rs 19,200
Money earned by selling shares of 'Satyam Infoways'
=Rs (25,000 - 5°/o of Rs 25,000) =Rs (25,000 - 1250) =Rs 23,750
Total money earned by selling shares= Rs (19,200+23,750) =Rs 42,950
Total earnings = money earned by selling shares +dividends earned = Rs ( 42, 950+5, 125) = Rs 48,075
Bhavana's earnings from the transactions =Rs ( 48,075-45,000)
= Rs 3,075
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