important question from the book -ML aggarwal( avichal publication)class 10th , chapter3, shares and dividends
we have given that A man bought 360 ten-rupee shares of a company paying 12 percent per annum.
He sold the shares when their price rose to Rs. 21 per share and invested the proceeds in five-rupee shares paying 4.5 per cent per annum at Rs. 3.50 per share.
kinldy please explain it how to Find the annual changes in his income.
Q no. 25, exercise 3, ML Publication, share and dividends
In the 1st case-
No of shares =360
N.V of 1 share =Rs.10
Rate of dividend =12%
∴Income on 1 share =12% of 10 =10012×10=Rs.1.2
⇒Total income=360×1.2=Rs.432
Now he sell all the shares for Rs.21 each
∴Money obtained by selling all the 360 shares=360×21=Rs.7560
In the 2nd case-
Sum invested =Rs.7560
N.V of 1 share =Rs.5
Rate of dividend =4.5%
M.V of 1 share =Rs.3.50
∴No. of share=3.507560=2160
Dividend on 1 share =4.5% of Rs. 5 =1004.5×5=Rs .225
⇒Total income=2160×.225=Rs.486
∴Change in income=Rs.486−Rs.432=Rs.54