Starting early can help you score better! Avail 25% off on study pack

A person invest Rs.8000 in 7% Rs. 100 shares at Rs.80. After a year he sold all his shares at Rs. 75 and invest his proceeds including dividend received earlier in 18% Rs. 25 shares at Rs. 41, Calculate

1.His gain or lossafter one year

2.Annual income from 2 investment

3.% change in hisoriginalinvestment

Asked by AMIT | 8th Feb, 2017, 10:45: AM

Expert Answer:

$begin mathsize 12px style For space the space 1 st space year Total space investment space equals space Rs. space 8000 Face space Value equals space Rs. space 100 Market space Value space equals thin space Rs. space 80 Rate space of space dividend space equals space 7 percent sign space space For space 2 nd space year colon space space Selling space price space per space share equals space Rs. space 75 space space Facevalue space equals space Rs. space 25 space space Market space value space equals space Rs. space 41 space space Rate space of space dividend space equals space 18 percent sign So comma space number space of space shares space equals space fraction numerator Investment over denominator Market space Value end fraction equals fraction numerator Rs. space 8000 over denominator Rs. space 80 end fraction equals space Rs. space 100 left parenthesis straight i right parenthesis space Dividend space per space share space equals space Rs. space 7 space of space Rs. space 100 space equals space Rs. space 7 Total space dividend space for space the space first space year space on space 100 space shares space equals Rs. space left parenthesis 7 cross times 100 right parenthesis equals space Rs. space 700 He space sold space his space shares space at space Rs. space 75 space each comma space so space the space sale space value space of space his space shares space equals space Rs. space 75 space cross times space 100 space equals space Rs. space 7500 The space amount space received space after space straight a space year equals space Dividend space received space on space shares space plus space sales space value space fo space shares space equals space Rs. space left parenthesis 7500 space plus space 700 right parenthesis space equals space Rs. space 8200 Gain space after space straight a space year space equals space proceeds minus investment equals Rs. space 8200 space minus space Rs. space 8000 equals Rs. space 200 left parenthesis ii right parenthesis space Dividend space per space share equals 18 percent sign space of space Rs. space 25 equals 18 over 100 cross times 25 equals Rs. space 4.50 space Annual space income space from space the space second space investment equals Rs. space 4.50 cross times 200 equals Rs. space 900 Increase space in space income space equals space Rs. space left parenthesis 900 space minus space 700 right parenthesis space equals space Rs. space 200 left parenthesis iii right parenthesis space Percentage space change equals fraction numerator Rs. space 200 over denominator Rs. space 8000 end fraction cross times 100 percent sign equals 2.5 percent sign end style$

Answered by Rebecca Fernandes | 8th Feb, 2017, 12:02: PM

Practice Test

Ask Doubt