Mr. Ram Gopal invested ₹ 8000 in 7%. ₹ 100 shares at ₹ 80. After a year he sold there share at ₹ 75 each and invested the proceeds (including his dividend) in 18%. ₹ 25 shares at ₹ 41. Find this annual dividend in $1^{s t}$ & $2^{n d}$ year are

₹ 700 & ₹ 900 respectively.

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₹ 900 & ₹ 700 respectively.

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₹ 200 & ₹ 700 respectively

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₹ 700 & ₹ 200 respectively

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Solution

The correct option is A
₹ 700 & ₹ 900 respectively.

Given investment ₹ 8000 div% = 7%

N.V = ₹ 100 and M.V = ₹ 80

Number of shares $= \frac{I n v e s t m e n t}{M . V o f e a c h s h a r e} = \frac{₹ .8000}{₹ .80} = 100$

Annual Income for 1st year = Number of shares $\times$ Dividend % $\times$ N.V

= 100 $\times$ $\frac{7}{100} \times$ 100

= ₹ 700

For Second Year

Each share is sold at ₹ 75 ;

Total Amount Received for 100 shares = 75 x 100 = ₹ 7500

Total Amount Invested to buy second share = Sale Proceeds + Annual Income of first year

= ₹ 7500 + 700

= ₹ 8200

N.V of each share = ₹ 25 ; M.V of each Share = ₹ 41

Number of shares $= \frac{I n v e s t m e n t}{M . V o f e a c h s h a r e} = \frac{₹ .8200}{₹ 41} = 200$

Given that Dividend % = 18 %

Hence

Annual Income = Number of shares $\times$ Dividend % $\times$ N.V

= 200 $\times$ $\frac{18}{100} \times$ 25

= ₹ 900

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Similar questions

Mr. Gopal invested Rs. 8,000 in 7% Rs. 100 shares at Rs. 80. After a year he sold these shares at Rs. 75 each and invested the proceeds (including dividend) in 18% Rs. 25 shares at Rs. 41. Find

Q. Mr. Ram Gopal invested Rs 8,000 in

7 %

Rs 100 shares at Rs 80. After a year, he sold these shares at Rs 75 each and invested the proceeds (including his dividend) in

18 %

, Rs 25 shares at Rs 41. Find:
(i) his dividend for the first year.
(ii) his annual income in the second year.
(iii) the percentage increase in his return on his original investment.
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Mr. Mayank invested Rs 8000 in 8% Rs 100 shares selling at Rs 80. After a year he sold these shares at Rs 82 each and invested the proceeds in Rs 100 shares selling at Rs 90 with a dividend of 12%. Calculate:

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Mr. Ram Gopal invested ₹ 8000 in 7%. ₹ 100 shares at ₹ 80. After a year he sold there share at ₹ 75 each and invested the proceeds (including his dividend) in 18%. ₹ 25 shares at ₹ 41. Find this annual dividend in 1st & 2nd year are

Mr. Ram Gopal invested ₹ 8000 in 7%. ₹ 100 shares at ₹ 80. After a year he sold there share at ₹ 75 each and invested the proceeds (including his dividend) in 18%. ₹ 25 shares at ₹ 41. Find this annual dividend in $1^{s t}$ & $2^{n d}$ year are