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Gagan Invested Rs 80% of His Savings in 10% Rs 100 Shares at 20% Premium and the Rest of His Savings in 20% Rs 50 Shares at Rs 20% Discount. If His Incomes from These Shares is Rs 5,600 Calculate: - Mathematics

Question

Gagan invested Rs 80% of his savings in 10% Rs 100 shares at 20% premium and the rest of his savings in 20% Rs 50 shares at Rs 20% discount. If his incomes from these shares is Rs 5,600 calculate:
(1) His investment in shares on the whole
(2) The number of shares of first kind that he bought
(3) Percentage return, on the shares bought on the whole.

Solution

1) Let the total saving be Rs x.

For 1 st  part:

N.V of each share = Rs 100

M.V of each share = `100 + 20/100 (100) = Rs 120

Number of shares bought = `(0.8x)/120`   ....(Investment = Rs x)

Dividend on each share = 10% of 100 = Rs 10 ...(Rate = 10%)

Total dividend = `10 xx (0.8x)/120 = Rs (0.8x)/12`

For 2nd part

N.V of each share = Rs 50

M.V of each share = `50 - 20/100 (50) = Rs 40`

Number of shares bought  = `(0.2x)/40` ...(Investment = Rs x)

Dividend on each shares = 20% of  50 = Rs 10 ....(Rate =20%)

Total dividend = `10 xx (0.2x)/40 = (0.2x)/4`

Given that dividends (incomes) from both the investment are is Rs 5600

`=> (0.8x)/12 + (0.2x)/4 = 5600`

`=> (0.8 + 0.6x)/12 = 5600`

`=> x = (5600 xx 12)/(1.4)`

=> x = 48000

Thus his investment in shares on the whole is Rs 48000

1) So number of shares bought  = `(0.8x)/120 = (0.8 xx 48000)/120 = Rs 320`

2) The total dividend (return) = `(0.8x)/12 + (0.2x)/4`

`= (0.8 (48000))/12 + (0.2(48000))/4`

= 0.8 x 4000 + 0.2 x 12000

= Rs 5600

Percentage return= `5600/48000 xx  100 = 11 2/3%`

  Is there an error in this question or solution?
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Gagan Invested Rs 80% of His Savings in 10% Rs 100 Shares at 20% Premium and the Rest of His Savings in 20% Rs 50 Shares at Rs 20% Discount. If His Incomes from These Shares is Rs 5,600 Calculate: Concept: Shares and Dividends.
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