Abhishek sold certain number of shares of Rs.20/- paying 8% dividend at Rs.18/- and invested the proceeds in Rs.10/- shares paying 12% dividend at 50% premium. If the change in his annual income is Rs.120/- find the number of shares sold by him.

Asked by rohitnagar | 16th Jun, 2019, 12:24: PM

Expert Answer:

FV equals 20 rs.
MV equals 18 Rs.
straight D percent sign equals 8 percent sign
straight D space on space 1 space share space equals space 1.6 rs
let space straight x space be space the space number space of space shares
so space income space equals space 1.6 straight x

Investmment space equals space 18 straight x
FV equals 10 rs.
MV equals 10 plus 50 percent sign space of space 10 space equals space 15 Rs
number space of space shares space equals fraction numerator 18 straight x over denominator 15 end fraction
straight D percent sign equals 12 percent sign
straight D space on space 1 space share space equals space 1.2 rs
new space income space equals space 1.6 straight x space plus 120..... considering space increase space in space income
number space of space shares space equals space fraction numerator 1.6 straight x plus 120 over denominator 1.2 end fraction
fraction numerator 1.6 straight x plus 120 over denominator 1.2 end fraction equals fraction numerator 18 straight x over denominator 15 end fraction
straight x equals negative 750.... not space possible
so space if space we space consider space that space his space income space reduced space by space 120
fraction numerator 1.6 straight x minus 120 over denominator 1.2 end fraction equals fraction numerator 18 straight x over denominator 15 end fraction
straight x equals 750

Answered by Arun | 16th Jun, 2019, 04:35: PM