Mathematics
A man sold 400 (₹ 20) shares of a company, paying 5% at ₹ 18 and invested the proceeds in (₹ 10) shares of another company paying 7% at ₹ 12. How many (₹ 10) shares did he buy and what was the 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
= 400 ×
= ₹ 400.
S.P. of shares = 400 × ₹ 18 = ₹ 7,200
M.V. of second type of shares = ₹ 12
No. of shares purchased = = 600.
In second case :
Annual income = No. of shares × Rate of div. × N.V. of 1 share
= 600 ×
= ₹ 420.
Change in income = ₹ 420 - ₹ 400 = ₹ 20.
Hence, no. of shares (₹ 10) bought = 600 and change in income = ₹ 20 (increase).
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