Question

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 :

(i) his investment in shares on the whole.

(ii) the number of shares of first kind that he bought.

(iii) percentage return, on the shares bought, on the whole.

Answer 1

(i) Let the total savings be Rs.x,
For 1st part:
Nominal Value of each share = Rs. 100
Market Value of each share = 100+(100) =Rs 120
Number of shares bought = ...(lnvestment Rs x)
Dividend on each share = 10% of 100 = Rs 10 ...(Rate = 10%)
Total dividend =

For 2nd part:
Nominal Value of each share = Rs.50
Market Value of each share = 50 - = Rs. 40
Number of shares bought = ...(investment = Rs.x)
Dividend on each share = 20% of 50 = Rs. 10 ...(Rate = 20%)

Total dividend =

Given that dividends (incomes) from both the investments are is Rs. 5600.

Thus, his investment in shares, on the whole, is Rs.48,000.

(ii) So, the number of shares bought =

(iii) total dividend (return) =

Percentage return =