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Usha Sold 350 Shares of Rs 150 Each Paying 6% Dividend at Rs 120 and Invested the Proceeds in Rs 75 Shares at Par Paying 8% Dividend. - Mathematics

Sum

Usha sold 350 shares of Rs 150 each paying 6% dividend at Rs 120 and invested the proceeds in Rs 75 shares at par paying 8% dividend. Calculate the number of Rs 75 shares she bought and the change in her annual income.

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Solution

In first case: 

No. of shares sold = 350 

Face value of each share =Rs 150 

Face value of 350 shares =Rs ( 150 x 350) =Rs 52,500 

Market value of each share = Rs 120 

Market value of 350 shares =Rs ( 120 x 350) =Rs 42,000 

Dividend (income) for 350 shares = 6 % of Rs 52,500 = 

Rs `(6 xx 52500)/100` = Rs 3150

In second case: 

Proceeds from selling 350 shares =Rs 42,000 

Face value of each share =Rs 75 

Market value of each share = Rs 75 

No. of shares bought = `42000/75 = 560`

Usha bought 560 shares of Rs 75 each. 

Face value of 560 shares =Rs (75 x 560) =Rs 42,000

Dividend (income) for 560 shares = 8 % of Rs 42,000 =

Rs `(8 xx 42000)/100` = Rs 3360

Change in annual income =Rs (3,360 - 3,150) =Rs 210 

Concept: Shares and Dividends Examples
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APPEARS IN

Frank ICSE Class 10 Mathematics Part 2
Chapter 4 Shares and Dividends
Exercise 4.2 | Q 9 | Page 64
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