Vivek invests ₹ 4500 in 8 % , ₹ 10 shares at ₹ 15. He sells the shares when the price rise to 30 and invests the proceeds in 12 %, ₹ 100 shares at ₹ 125.
Calculate (i) the sale proceeds
(ii) the number of ₹ 125 shares he buys
(iii) the change in his annual income from dividend
i) ₹ 9000 (ii) 72 (iii) ₹ 624
Given that Amount Invested = ₹ 4500
M.V of each share = ₹ 15
Number of shares bought = 450015
= 300
i) The shares were sold when it the price rose to ₹ 30
Hence the sale proceed = 30 x 300
= ₹ 9000
ii)
M.V of the new share = ₹ 125
Hence number of shares bought = Amount InvestedM.V of each share
= 9000125
= 72
iii) For the first investment
The dividend of the first investment = 8 % ; N.V = ₹ 10 ; Number of shares = 300
Hence the annual income = Dividend % x N.V x Number of shares
= 8100 × 10 × 300
= ₹ 240
For the second investment
The dividend of the first investment = 12 % ; N.V = ₹ 100 ; Number of shares = 72
Hence the annual income = Dividend % x N.V x Number of shares
= 12100 × 100 × 72
= ₹ 864
Change in annual income = 864 - 240
= ₹ 624