Mathematics
A man bought 360, ten-rupee shares of a company, paying 12 percent per annum. He sold shares when their price rose to ₹ 21 per share and invested the proceeds in five-rupee shares paying 4.5 percent per annum at ₹ 3.50 per share. Find annual change in his income.
Shares & Dividends
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Answer
In first case :
Annual income = No. of shares × Rate of div. × N.V. of 1 share
= 360 ×
= ₹ 432
S.P. of shares = 360 × ₹ 21 = ₹ 7,560
M.V. of second shares = ₹ 3.50
No. of shares purchased = = 2160.
Annual income = No. of shares × Rate of div. × N.V. of 1 share
= 2160 ×
= ₹ 486.
Change in income = ₹ 486 - ₹ 432 = ₹ 54.
Hence, the change in income = ₹ 54 (increase).
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