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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

#### 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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