Question

Rohit invested Rs. $9,600$ on Rs. $100$ shares at Rs. $20$ premium paying $8$% dividend. Rohit sold the shares when the price rose to Rs. $160$. He invested the proceeds (excluding dividend) in $10$% Rs. $50$ shares at Rs. $40$. Find the :
(i) original number of shares.
(ii) sale proceeds.
(iii) new number of shares.
(iv) change in the two dividends.

Answer 1

Given : Investment $=$ Rs. $9,600$, $NV=$ Rs. $100$, $MV=$ Rs. $120$, $Div=8$%

(i) Number of shares $=\frac{Suminvestment}{MVof1Share}$
$=\frac{9,600}{120}$

$=80$

(ii) Sale proceed $=80\times 160$

$=$ Rs. $12,800$
For 2nd type,
$NV=$ Rs. $50$, $MV=$ Rs. $40$, $Div=10$%

(iii) New number of shares $=\frac{12,800}{40}$

$=320$

(iv) ${Div}_1=\frac{8}{100}\times 100\times 80=$ Rs. $640$

${Div}_2=\frac{10}{100}\times 50\times 320=$ Rs. $1,600$

Change in two div. $=$ Rs. $1,600-$ Rs. $640=$ Rs. $960$.