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Vivek Invests Rs 4500 in 8%. Rs. 10 Shares at Rs. 15. He Sells the Shares When the Price Rises to Rs. 30, and Invests the Proceeds in 12% Rs. 100 Shares at Rs. 125. Calculate. (1) the Sale Proceeds (2) the Number of Rs. 125 Shares He Buys. (3) the Change in His Annual Income from Dividend. - ICSE Class 10 - Mathematics

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Question

Vivek invests Rs 4500 in 8%. Rs. 10 shares at Rs. 15. He sells the shares when the price
rises to Rs. 30, and invests the proceeds in 12% Rs. 100 shares at Rs. 125. Calculate.
(1) the sale proceeds
(2) the number of Rs. 125 shares he buys.
(3) the change in his annual income from dividend.

Solution

1) Number of Rs.15 shares bought = `4500/15 = 300`

Total FV.of shares= F.V of each share x No. of shares = 300 xx 10 = Rs 3000

Dividend = 8% of total F.V = `8/100 xx 3000` =  Rs  240

S.P of shares = `300 xx 30 =  Rs  9000`

Investment  = Rs  9000

2) The number of Rs. 125 shares = `9000/125 = 72`

3) Total FV of Rs. 100 shares = Rs. 72 × 100 = Rs. 7200

New dividend = `12/100 xx 7200 =  Rs  864`

The change in his annual income from dividend = Rs. 864 – Rs. 240 = Rs. 624

  Is there an error in this question or solution?

APPEARS IN

 2009-2010 (March) (with solutions)
Question 9.3 | 4.00 marks

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Solution Vivek Invests Rs 4500 in 8%. Rs. 10 Shares at Rs. 15. He Sells the Shares When the Price Rises to Rs. 30, and Invests the Proceeds in 12% Rs. 100 Shares at Rs. 125. Calculate. (1) the Sale Proceeds (2) the Number of Rs. 125 Shares He Buys. (3) the Change in His Annual Income from Dividend. Concept: Shares and Dividends.
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