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Shares and Dividends | Shares and Dividends Exercise 3

Question 29

A man invests Rs -10080 in 6% hundred- rupee shares at Rs. 112. Find his annual income. When the shares fall to Rs. 96 he sells out the shares and invests the proceeds in 10% ten-rupee shares at Rs. 8. Find the change in his annual income.

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Given Investment = Rs. 10080

Face value of each share = Rs. 100

Market value of each share = Rs. 112

Rate of dividend = 6%

Total income for the year = (10080 x 6)/ 112 = Rs 540

Number of shares = 10080/112 = 90

Selling price of 90 shares at the rate of Rs 96 each = 90 x 96 = Rs 8640

Rate of dividend in new shares = 10%

Face value of each share = Rs 10

Market value of each share = Rs 8

Number of shares = 8640/8 = 1080

Face value of 1080 shares = 1080 x 10 = Rs 10800

Dividend = (10800 x 10)/100 = Rs 1080

Difference in income = 1080 – 540 = Rs 540 more

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Our top 5% students will be awarded a special scholarship to Lido.

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Question 29

A man invests Rs -10080 in 6% hundred- rupee shares at Rs. 112. Find his annual income. When the shares fall to Rs. 96 he sells out the shares and invests the proceeds in 10% ten-rupee shares at Rs. 8. Find the change in his annual income.

Looking to do well in your science exam ? Learn from an expert tutor. Book a free class!

Given Investment = Rs. 10080

Face value of each share = Rs. 100

Market value of each share = Rs. 112

Rate of dividend = 6%

Total income for the year = (10080 x 6)/ 112 = Rs 540

Number of shares = 10080/112 = 90

Selling price of 90 shares at the rate of Rs 96 each = 90 x 96 = Rs 8640

Rate of dividend in new shares = 10%

Face value of each share = Rs 10

Market value of each share = Rs 8

Number of shares = 8640/8 = 1080

Face value of 1080 shares = 1080 x 10 = Rs 10800

Dividend = (10800 x 10)/100 = Rs 1080

Difference in income = 1080 – 540 = Rs 540 more

Our top 5% students will be awarded a special scholarship to Lido.

subject-cta
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