Advertisements
Advertisements
Question
Sachin invests Rs. 8500 in 10%, Rs 100 shares at Rs. 170. He sells the shares when the price of each share rises by Rs. 30. He invests the proceeds in 12% Rs. 100 shares at Rs. 125. Find:
(i) the sale proceeds.
(ii) the number of Rs. 125 shares he buys.
(iii) the change in his annual income.
Solution
(i) By investing, share bought = 100
By investing, shares bought `= 100/170 xx 8500 = " Rs " . 5000`
Total face value of Rs. 100 shares = Rs. 5000
Income = 10 % of face value
` = 10/100 xx 5000 = " Rs . " 500`
By selling Rs.100 share, money received = 170 + 30 = Rs. 200
By selling Rs. 5000 shares money, money received `= 200/100 xx 5000 = "Rs". 10000`
Sale Proceeds = Rs. 10000
(ii) By investing Rs. 125, No. of Rs. 100 share bought = 1
By investing Rs. 10000, No. of Rs. 100 shares bought `= 10000/125 = 80`
∴ No. of Rs. 125 shares bought = 80
(iii) By investing Rs. 125 in Rs. 100 share, Income = Rs. 12
By investing Rs. 10000 in Rs. 100 share, Income `= 12/125 xx 10000 = "Rs ". 960`
Increase in income = Rs. 960 – Rs. 500 = Rs. 460
APPEARS IN
RELATED QUESTIONS
Vivek invests Rs 4500 in 8%. Rs. 10 shares at Rs. 15. He sells the shares when the price
rises to Rs. 30, and invests the proceeds in 12% Rs. 100 shares at Rs. 125. Calculate.
(1) the sale proceeds
(2) the number of Rs. 125 shares he buys.
(3) the change in his annual income from dividend.
Hundred rupee shares of a company are available in the market at a premium of Rs. 20. Find the rate of dividend given by the company, when a man’s return on his investment is 15%.
Rs. 50 shares of a company are quoted at a discount of 10%. Find the rate of dividend given by the company, the return on the investment on these shares being 20 per cent.
A lady holds 1800, Rs. 100 shares of a company that pays 15% dividend annually. Calculate her annual dividend. If she had bought these shares at 40% premium, what is the return she gets as percent on her investment? Give your answer to the nearest integer.
Find the annual income derived from 250, Rs. 60 shares paying 5% dividend.
Mrs. P. Chandra invested Rs. 19,200 in 15% Rs. 100 shares at 20% discount. After a year, she sold these shares at Rs. 90 each and invested the proceeds (including her dividend) in 20%, Rs. 50 shares at Rs. 42. Find:
(i) The dividend for the first year.
(ii) Her annual income in the second year.
(iii) The percentage change in her return on her original investment.
Gagan invested 80% of his savings in 10% Rs. 100 shares at 20% premium and the rest of his savings in 20% Rs. 50 shares at 20% discount. If his incomes from these shares is Rs. 5,600, calculate:
- his investment in shares on the whole.
- the number of shares of first kind that he bought.
- percentage return, on the shares bought, on the whole.
Salman buys 50 shares of face value Rs.100 available at Rs.132.
(i) What is his investment?
(ii) If the dividend is 7.5%, what will be his annual income?
(iii) If he wants to increase his annual income by Rs.150, how many extra shares should he buy?
At what price should a 6.25% Rs. 50 share be quoted when the money is worth 10%?
A man invests ₹ 24000 on ₹ 60 shares at a discount of 20%. if the dividend declared by the company is 10%, then his annual income is
