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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: - ICSE Class 10 - 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%`

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Solution 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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