Question

Vivek invests Rs. $4,500$ in $8\%$, Rs. $10$ shares at Rs. $15$. He sells the shares when the price rises to Rs. $30$ and invests the proceeds in $12\%$ Rs. $100$ shares at Rs. $125$. calculate :
i) the sale proceeds
ii) the number of Rs. $125$ shares he buys.
iii) the change in his annual income from dividend.

Answer 1

Number of shares bought by Vivek $=\frac{4500}{15}=300$ share

So,

Dividend$=\frac{300\times 10\times 8}{100}=240$Rs.

1) Sales proceeds = Number of shares * Price$=300\times 30=9000$ Rs.

2) Number of Rs. 125 share $=\frac{9000}{125}=72$ shares

3) Dividend from new shares$=\frac{72\times 100\times 12}{100}=864$ Rs.

So,

Change in income $=864-240=624$ Rs.