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Question

# A man bought 360, ten-rupee shares of a company, paying 12 percent per annum. He sold the shares when their price rose to Rs.21 per share and invested the proceeds in five-rupee shares paying 45 per cent per annum at Rs.3.50 per share. Find the annual change in his income.

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Solution

## In the 1st case-No of shares =360N.V of 1 share =Rs.10Rate of dividend =12∴Income on 1 share =12 of 10 =12100×10=Rs.1.2⇒Total income=360×1.2=Rs.432Now he sell all the shares for Rs.21 each∴Money obtained by selling all the 360 shares=360×21=Rs.7560In the 2nd case-Sum invested =Rs.7560N.V of 1 share =Rs.5Rate of dividend =4.5%M.V of 1 share =Rs.3.50∴No. of share=75603.50=2160Dividend on 1 share =4.5% of Rs. 5 =4.5100×5=Rs .225⇒Total income=2160×.225=Rs.486∴Change in income=Rs.486−Rs.432=Rs.54

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