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Question
Mr. Dinesh invests Rs. 20800 in 6% Rs. 100 shares at Rs. 104, and Rs. 14300 in 10.5% Rs. 100 shares at Rs.143. What will be his annual income from the shares?
Solution
For 1st kind of shares,
Face value of shares (F.V.) = ₹ 100
Dividend = 6%
∴ Annual income from one share = `6/100 xx 100`
= ₹ 6
Market value of the share (M.V.) = ₹ 104
Total amount invested = ₹ 20,800
∴ Number of shares = `"Amount invested"/"Market value"`
= `(20,800)/104`
= 200
∴ Total income from 1st kind of shares = 200 × 6
= ₹ 1200
For 2nd kind of shares,
Face value of shares (F.V.) = ₹ 100
Dividend = 10.5%
∴ Annual income from one share = `10.5/100 × 100`
= ₹ 10.5
Market value of the share (M.V.) = ₹ 143
Total amount invested = ₹ 14300
∴ Number of shares = `"Amount invested"/"Market value"`
= `14300/143`
= 100
∴ Total income from 2nd kind of shares
= 100 × 10.5 = ₹ 1050
∴ Total annual income of Dinesh from both these shares = 1200 + 1050
= ₹ 2250
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