an important question from the book -ML aggarwal( avichal publication)class 10th , chapter3, shares and dividends ……..

we have given that A man sold some Rs. 100 shares paying 10% dividend at a discount of 25%

and invested the proceeds in Rs. 100 shares paying 16% dividend quoted at Rs. 80 a

nd thus increased his income by Rs. 2000.

please mention the procedure to Find the number of shares sold by him.

Q no. 33, exercise 3, ML Publication, share and dividends

Given,

Face value of each share = Rs. 100

Market value of each share = Rs. 100 – Rs.25

= Rs. 75

Rate of dividend = 10%

Let the no. of shares be taken as x

Selling price = x × 75 = Rs. 75x

Face value of x share = 100 x

Dividend annually = 100x × 10/100 = 10x

No. of shares purchased = 75x/80 = 15x/16

Face value of 15x/16 shares = 15x/16 × 100 = 1500x/16

Now, dividend = 1500x/16 × 16/100 = 15x

Thus, the increase in the income = 15x – 10x = 5x

Now, we have

5x = 2000

x = 2000/5 = 400

Hence, the number of shares purchased = 400