Tamil Nadu Board of Secondary EducationHSC Commerce Class 11th

Babu sold some ₹ 100 shares at 10% discount and invested his sales proceeds in 15% of ₹ 50 shares at ₹ 33. Had he sold his shares at 10% premium instead of 10% discount, - Business Mathematics and Statistics

Sum

Babu sold some ₹ 100 shares at 10% discount and invested his sales proceeds in 15% of ₹ 50 shares at ₹ 33. Had he sold his shares at 10% premium instead of 10% discount, he would have earned ₹ 450 more. Find the number of shares sold by him.

Solution

Let the number of shares sold by Babu be x.

The face value of a share is ₹ 100.

He sold a 10% discount; the selling price of one share ₹ 90.

The selling price of x shares = ₹ 90x

He bought a share of face value ₹ 50 and the number of shares 33.

∴ Number of shares bought for the amount ₹ 90x i.e., (90"x")/33

∴ Face value of 50 shares = Cost of one share × Number of share

= 50 xx (90"x")/33

The dividend is 15%.

∴ Income = 15/100 × Face value of 50 shares

= 15/100 xx 50 xx (90"x")/33

= (225"x")/11

Suppose he sold his shares at 10% premium instead of 10% discount, the market value of one share is ₹ 110.

Selling price of x shares = 110 × x = 110x

Number of shares bought for ₹ 33 = (110"x")/33

Face value of 50 shares = (110"x")/33 × 50

Income = 15/100 xx (110"x")/33 xx 50 = 25x

Change Income = ₹ 450

25"x" = 225/11"x" = 450

(25 xx 11"x" - 225"x")/11 = 450

(275"x" - 225"x")/11 = 450

(50"x")/11 = 450

x = 450/50 xx 11 = 9 × 11 = 99 shares

Concept: Stocks, Shares, Debentures and Brokerage
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