Frank Solutions for Chapter 4 Shares and Dividend Class 10 ICSE Mathematics
Chapter 4 Shares and Dividend
1. Calculate the investment required to buy:
(a) 500 shares of Rs 75 each at a premium of Rs 17.
(b) 315 shares of Rs 60 each at a premium of Rs 12.
(c) 600 shares of Rs 25 each at a discount of Rs 3.
(d) 425 shares of Rs 10 each at a discount of Rs 1.50.
(e) 250 shares of Rs 20 each at par.
(f) 150 shares of Rs 100 each at a premium of 12%.
(g) 220 shares of Rs 75 each at a premium of 15%.
Answer
From the question it is given that,
(a) The number of shares 500
Then, shares of ₹ 75 each at a premium of ₹ 17 = 75 + 17 = ₹ 92
So, the investment required to buy 500 shares = 92 × 500
= ₹ 46,000
(b) 315 shares of Rs 60 each at a premium of Rs 12.
From the question it is given that,
The number of shares 315
Then, shares of ₹ 60 each at a premium of ₹ 12 = 60 + 12 = ₹ 72
So, the investment required to buy 315 shares = 72 × 315
= ₹ 22,680
(c) 600 shares of Rs 25 each at a discount of Rs 3.
From the question it is given that,
The number of shares 600
Then, shares of ₹ 25 each at a discount of ₹ 3 = 25 – 3 = ₹ 22
So, the investment required to buy 600 shares = 22 × 600
= ₹ 13,200
(d) 425 shares of Rs 10 each at a discount of Rs 1.50.
From the question it is given that,
The number of shares 425
Then, shares of ₹ 10 each at a discount of ₹ 1.50 = 10 – 1.50 = ₹ 8.50
So, the investment required to buy 600 shares = 8.50 × 425
= ₹ 3,612.50
(e) 250 shares of Rs 20 each at par.
From the question it is given that,
The number of shares 250
Then, shares of ₹ 20 each at par
So, the investment required to buy 250 shares = 20 × 250
= ₹ 5,000
(f) 150 shares of Rs 100 each at a premium of 12%.
From the question it is given that,
The number of shares 150
Then, shares of ₹ 100 each at a premium of 12% = (100 + 12% of ₹ 100)
= 100 + ((12/100) × 100)
= 100 + 12
= ₹ 112
So, the investment required to buy 150 shares = 112 × 150
= ₹ 16,800
(g) 220 shares of Rs 75 each at a premium of 15%.
From the question it is given that,
The number of shares 220
Then, shares of ₹ 75 each at a premium of 15% = (75 + 15% of ₹ 75)
= 75 + ((15/100) × 75)
= 75 + 11.25
= ₹ 86.25
So, the investment required to buy 220 shares = 86.25 × 220
= ₹ 18,975
(h) 340 shares of Rs 125 each at a discount of 20%.
From the question it is given that,
The number of shares 340
Then, shares of ₹ 125 each at a discount of 20% = (125 – 20% of ₹ 125)
= 125 – ((20/100) × 125)
= 125 – 25
= ₹ 100
So, the investment required to buy 220 shares = 340 × 100
= ₹ 34,000
(i) 750 shares of Rs 100 each at a discount of 24%.
From the question it is given that,
The number of shares 750
Then, shares of ₹ 100 each at a discount of 24% = (100 – 24% of ₹ 100)
= 100 – ((24/100) × 100)
= 100 – 24
= ₹ 76
So, the investment required to buy 750 shares = 750 × 76
= ₹ 57,000
(j) 116 shares of Rs 125 each at par.
From the question it is given that,
The number of shares 116
Then, shares of ₹ 125 each at par
So, the investment required to buy 116 shares = 125 × 116
= ₹ 14,500
2. Calculate the annual income of the following:
(a) 180 shares of Rs 50 each paying 12% dividend.
(b) 424 shares of Rs 125 each paying 8% dividend.
(c) 60 shares of Rs 100 each available at Rs 75 and paying 5% dividend.
(d) 120 shares of Rs 50 each available at Rs 62 and paying 13% dividend.
Answer
(a) 180 shares of Rs 50 each paying 12% dividend.
From the question it is given that,
The number of shares 180
Then, shares of ₹ 50,
Therefore, total investment = ₹ (50 × 180) = ₹ 9,000
Dividend = 12%
So, the annual Income = (12 × 9,000)/100
= ₹ 1,080
(b) 424 shares of Rs 125 each paying 8% dividend.
From the question it is given that,
The number of shares 424
Then, shares of ₹ 125,
Therefore, total investment = ₹ (125 × 424) = ₹ 53,000
Dividend = 8%
So, the annual Income = (8 × 53,000)/100
= ₹ 4,240
(c) 60 shares of Rs 100 each available at Rs 75 and paying 5% dividend.
From the question it is given that,
The number of shares 60
Then, shares of ₹ 100,
Therefore, total investment = ₹ (100 × 60) = ₹ 6,000
Dividend = 5%
So, the annual Income = (5 × 6,000)/100
= ₹ 300
(d) 120 shares of Rs 50 each available at Rs 62 and paying 13% dividend.
From the question it is given that,
The number of shares 120
Then, shares of ₹ 50,
Therefore, total investment = ₹ (50 × 120) = ₹ 6,000
Dividend = 13%
So, the annual Income = (13 × 6,000)/100
= ₹ 780
3. Calculate the percentage income in the following investments:
(a) Rs 7,225 paying 12% when a Rs 100 share is available at 15% discount.
(b) Rs 7,168 paying 15% when a Rs 80 share is available at 40% premium.
(c) Rs 36,250 in a Rs 125 share paying 8% and available at a premium of Rs 20.
(d) Rs 12,375 in a Rs 75 share paying 4% and available at a discount of Rs 20.
Answer
(a) Rs 7,225 paying 12% when a Rs 100 share is available at 15% discount.
From the question it is given that,
Nominal value of each share = ₹ 100 is available at 15% discount
Therefore, Market value = ₹ (100 – 15 % of ₹ 100)
= ₹ 100 – ₹ 15
= ₹ 85
Then, number of shares purchased = 7,225/85
= ₹ 85
So, face value of 85 shares = ₹ 100 × 85
= ₹ 8,500
Given, dividend = 12%
Annual income = (12 × 8,500)/100
= ₹ 1,020
Therefore, percentage income = (1,020 × 100)/7,225
= 14.12%
(b) Rs 7,168 paying 15% when a Rs 80 share is available at 40% premium.
From the question it is given that,
Nominal value of each share = ₹ 80 is available at 40% premium
Therefore, Market value = ₹ (80 + 40 % of ₹ 80)
= ₹ 80 + ₹ 32
= ₹ 112
Then, number of shares purchased = 7,168/112
= ₹ 64
So, face value of 64 shares = ₹ 80 × 64
= ₹ 5,120
Given, dividend = 15%
Annual income = (15 × 5,120)/100
= ₹ 768
Therefore, percentage income = (768 × 100)/7,168
= 10.71%
(c) Rs 36,250 in a Rs 125 share paying 8% and available at a premium of Rs 20.
From the question it is given that,
Nominal value of each share = ₹ 125 is available at 8% premium
Therefore, Market value = ₹ (125 + ₹ 20)
= ₹ 145
Then, number of shares purchased = 36,250/145
= ₹ 250
So, face value of 250 shares = ₹ 125 × 250
= ₹ 31,250
Given, dividend = 8%
Annual income = (8 × 31,250)/100
= ₹ 2,500
Therefore, percentage income = (2,500 × 100)/36,250
= 6.9%
(d) Rs 12,375 in a Rs 75 share paying 4% and available at a discount of Rs 20.
From the question it is given that,
Nominal value of each share = ₹ 75 is available at discount
Therefore, Market value = (₹ 75 – ₹ 20)
= ₹ 55
Then, number of shares purchased = 12,375/55
= ₹ 255
So, face value of 225 shares = ₹ 75 × ₹ 225
= ₹ 16,875
Given, dividend = 4%
Annual income = (4 × 16,875)/100
= ₹ 675
Therefore, percentage income = (675 × 100)/12,375
= 5.45%
4. Rani has 500 shares of Rs 125 each of a company paying 12% dividend. Find her net income after paying 5% income tax.
Answer
From the question it is given that,
Number of shares = 500
Then, nominal value of each share = ₹ 125
So, face value of 500 shares = ₹ 125 × ₹ 500
= ₹ 62,500
Rate of dividend = 12%
Therefore, total dividend = (62,500 × 12)/100
= ₹ 7,500
So, rate of income tax = 5%
Total tax = (5 × 7500)/100
= ₹ 375
Hence, net income = ₹(7,500 – 375)
= ₹ 7,125
5. Yash has 1200 shares of Rs 150 each of ‘Honeywell Corporation’ paying 18% dividend. Find his net income after paying.
Answer
From the question it is given that,
Number of shares = 1200
Then, nominal value of each share = ₹ 150
So, face value of 1200 shares = ₹ 150 × ₹ 1200
= ₹ 1,80,000
Rate of dividend = 18%
Therefore, total dividend = (1,80,000 × 18)/100
= ₹ 32,400
So, rate of income tax = 8%
Total tax = (8 × 32,400)/100
= ₹ 2,592
Hence, net income = ₹(32,400 – 2,592)
= ₹ 29,808
6. Anu has 750 shares of Rs 60 each of ‘Tata Infotech’ paying 15% dividend. Find her net income after paying 6% income tax.
Answer
From the question it is given that,
Number of shares = 750
Then, nominal value of each share = ₹ 60
So, face value of 750 shares = ₹ 60 × ₹ 750
= ₹ 45,000
Rate of dividend = 15%
Therefore, total dividend = (45,000 × 15)/100
= ₹ 6,750
So, rate of income tax = 6%
Total tax = (6 ×6,750)/100
= ₹ 405
Hence, net income = ₹(6,750 – 405)
= ₹ 6,345
7. Mahesh bought 600 shares of Rs 50 each of ‘Excel Computers’. He sold one third of them when they were at a premium of Rs 20 and the remaining when they were at a discount of Rs 5. Find his gain or loss in the transaction.
Answer
From the question it is given that,
Number of shares = 600
Then, nominal value of each share = ₹ 50
So, investment by Mahesh = ₹ (50 × 600)
= ₹ 30,000
Mahesh sold shares at premium = (1/3) × 600
= 200
Market value of a share with premium = ₹ (50 + 20) = ₹ 70
Then, value of 200 shares = ₹ (70 × 200)
= ₹ 14,000
Shares sold at discount = 600 – 200 = ₹ 400
Then, market value of a share with discount = ₹ 50 – ₹ 5 = ₹ 45
Value of 400 shares = ₹ (45 × 400)
= ₹ 18,000
By adding value of 200 shares and value of 400 shares we get the total money received by selling his shares,
= 14,000 + 18,000
= ₹ 32,000
Difference in selling price and cost price = ₹ (32,000 – 30,000)
= ₹ 2,000
Therefore, Mahesh gained ₹ 2,000.
8. Divya invested Rs 50,000 in buying shares of Rs 125 each of ‘Hitech Technologies’. She sold half of them when they were at a premium of 24% and the remaining half when they were at a discount of 20%. Find her gain or loss in the transaction.
Answer
From the question it is given that,
Divya invested ₹ 50,000
Then, nominal value of each share = ₹ 125
Number of shares purchased by Divya = 50,000/125
= 400
Divya sold shares at premium = ₹ 200
Market value of a share with premium = ₹ (125 + 24% of ₹ 125)
= 125 + 30
= ₹ 155
Then, value of 200 shares = ₹ (155× 200)
= ₹ 31,000 … (i)
Shares sold at discount = ₹ 200
Then, market value of a share with discount = ₹ (125 – 20% of ₹ 125)
= ₹ 125 – ₹ 25
= ₹ 100
Value of 200 shares = ₹ (100 × 200)
= ₹ 20,000 …(ii)
By adding i and ii we get the total money received by selling her shares,
= 31,000 + 20,000
= ₹ 51,000
Therefore, Divya gained ₹ 1,000.
9. Ashutosh invested Rs 58,500 in buying shares of Rs 150 each of ‘Van Chemicals’, when it was available in the market at a premium of 30%. He sells one third of them at a market rate of Rs 215, one third of them at a market rate of Rs 195 and the rest at Rs 175. Find his loss or gain from the transaction.
Answer
From the question it is given that,
Ashutosh invested ₹ 58,500
Then, price at which Ashutosh purchased one share = ₹ (150 + 30% of ₹150)
= ₹ (150 + 45)
= ₹ 195
So, number of shares purchased by Ashutosh = 58,500/195
= 300
Shares sold at ₹215 = 1/3 × 300
= 100
Then, Selling price of 100 shares at ₹ 215
= ₹ 100 × ₹ 215
= ₹ 21,500 … (1)
Now, shares sold at ₹ 195 = 195 × 100
= ₹ 19,500 …(2)
Selling price of 100 shares at ₹ 175 = 100 × 175
= ₹ 17,500 …(3)
By adding 1, 2 and 3 we get the total money received by selling his shares,
= 21,500 + 19,500 + 17,500
= ₹ 58,500
So, Difference in selling price and cost price = ₹ (58,500 – 58,500)
= ₹ 0
Therefore, Ashutosh sold his shares at no loss or gain.
10. Saurav invested 10%, 30% and 40% of his savings in buying shares of 3 different companies A, B and C which declared dividends of 12%, 15% and 16% respectively. If Saurav’s total income from dividends is Rs 3,025, find his savings and the amount invested in each company.
Answer
Let us assume the total savings be y.
From the question it is given that,
Saurav invested 10%, 30% and 40% of his savings in buying shares of 3 different companies A, B and C.
Companies A, B and C which declared dividends of 12%, 15% and 16% respectively.
Then,
Investment in company A = 10 % of y = (10/100) × y
= y/10
Investment in company B = 30 % of y = (30/100) × y
= (3/10) × y
= 3y/10
Investment in company C = 40 % of y = (40/100) × y
= 4/10 × y
= 2y/5
Now,
Dividend given by company A = 12% of y/10
= (12 × y)/(100 × 10)
= 0.012y …(1)
Dividend given by company B = 15% of 3y/10
= (15 × 3y)/(100 × 10)
= 0.045y …(2)
Dividend given by company C = 16% of 2y/5
= (16 × 2y)/(100 × 5)
= 0.064y …(3)
Given, sum of 1, 2 and 3 is equal to ₹ 3,025
So, 1 + 2 + 3 = ₹ 3,025
⇒ 0.012y + 0.045y + 0.064y = ₹ 3,025
⇒ y (0.012 + 0.045 + 0.064) = ₹ 3,025
⇒ 0.121y = ₹ 3,025
⇒ y = ₹ 3,025/0.121
⇒ y = ₹ 25,000
Therefore, Saurav’s savings = ₹ 25,000
Investment in company A = (y/10) = 25,000/10
= ₹ 2,500
Investment in company B = (3y/10) = 75,000/10
= ₹ 7,500
Investment in company C = (2y/10) = 50,000/5
= ₹ 10,000
11. Akanksha invested 15%, 25% and 35% of her savings in buying shares of ‘Infosys’, ‘Wipro’ and ‘Reliance’ which declared dividends of 16%, 18% and 20% respectively. If her total income from dividends is Rs 52,125, find her savings and the amount invested in each company.
Answer
Let us assume the total savings be y.
From the question it is given that,
Akanksha invested 15%, 25% and 35% of her savings in buying shares of ‘Infosys’, ‘Wipro’ and ‘Reliance’.
Companies ‘Infosys’, ‘Wipro’ and ‘Reliance’ which declared dividends of 16%, 18% and 20% respectively.
Then,
Investment in ‘Infosys’ company = 15 % of y = (15/100) × y
= (3/20) × y
= 3y/20
Investment in ‘Wipro’ company = 25 % of y = (25/100) × y
= y/4
Investment in ‘Reliance’ company = 35 % of y = (35/100) × y
= 7/20 × y
= 7y/20
Now,
Dividend given by ‘Infosys’ company = 16% of 3y/20
= (16 × 3y)/(100 × 20)
= 0.024y …(1)
Dividend given by ‘Wipro’ company = 18% of y/4
= (18 × y)/(100 × 4)
= 0.045y … [2]
Dividend given by ‘Reliance’ company = 20% of 7y/20
= (20 × 7y)/(100 × 20)
= 0.07y …(3)
Given, sum of 1, 2 and 3 is equal to ₹ 52,125
So, 1 + 2 + 3 = ₹ 52,125
0.024y + 0.045y + 0.07y = ₹ 52,125
y (0.024 + 0.045 + 0.07) = ₹ 52,125
0.139y = ₹ 52,125
y = ₹ 52,125/0.139
y = ₹ 3,75,000
Therefore, Akanksha’s savings = ₹ 3,75,000
Investment in ‘Infosys’ company = (3y/20) = (3 × 3,75,000)/10
= ₹ 56,250
Investment in ‘Wipro’ company = (y/4) = (3,75,000)/4
= ₹ 93,750
Investment in ‘Reliance’ company = (7y/20) = (7 × 3,75,000)/20
= ₹ 1,31,250
12. Tarun invested Rs 24,000 and Rs 30,000 in buying Rs 100 at par shares of ‘Vam Organics’ and ‘Hero Honda’ which later declared dividend of 12% and 15% respectively. After collecting the dividends Tarun sold the shares as their prices had fallen by Rs 5 and Rs 10 respectively. Find Tarun’s earnings from the above transactions.
Answer
From the question it is given that,
Tarun invested ₹ 24,000 and ₹ 30,000 in buying ₹ 100 at par shares of ‘Vam Organics’ and ‘Hero Honda’.
Then, total investment = ₹ 24,000 + ₹ 30,000 = ₹ 54,000
So, number of shares of ‘Vam Organics’ = money invested/cost of one share
= 24,000/100
= 240
Number of shares of ‘Hero Honda’ = money invested/cost of one share
= 30,000/100
= 300
Now, dividend given by ‘Vam Organics’ = 12% = (12 × 24,000)/100 = ₹ 2,880
Dividend given by ‘Hero Honda’ = 15% = (15 × 30,000)/100 = ₹ 4,500
Then, total dividend earned = ₹ 2,880 + ₹ 4,500
= ₹ 7,380
So, money earned by selling shares of ‘Vam Organics’ = ₹ 95 × ₹ 240
= ₹ 22,800
Money earned by selling shares of ‘Hero Honda’ = ₹ 90 × ₹ 300
= ₹ 27,000
Therefore, total money earned by selling shares = ₹ 22,800 + ₹ 27,000
= ₹ 49,800
Hence, total earnings = money earned by selling shares + dividends earned
= ₹ 49,800 + ₹ 7,380
= ₹ 57,180
Tarun’s earnings from the transactions = ₹ 57,180 – ₹ 54,000
= ₹ 3,180
13. Bhavana invested Rs 20,000 and Rs 25,000 in buying shares of ‘Bharati Telecom’ and ‘Satyam Infoways’ which later declared dividend of 10% and 12.5% respectively. After collecting the dividends Bhavana sells all her shares at a loss of 4% and 5% respectively on her investments. Find her total earnings.
Answer
From the question it is given that,
Bhavana invested ₹ 20,000 and ₹ 25,000 in buying of ‘Bharati Telecom’ and ‘Satyam Infoways’.
Then, ‘Bharati Telecom’ which declared dividend of 10% = (10 × 20,000)/100 = ₹ 2,000
‘Satyam Infoways ‘ which declared dividend of 12.5% = (12.5 × 25,000)/(10 × 100) = ₹3,125
So, money earned by selling shares of ‘Bharati Telecom’ = (20,000 – 4% of ₹ 20,000)
= ₹ 20,000 – 800
= ₹ 19,200
Money earned by selling shares of ‘Satyam Infoways’ = (25,000 – 5% of ₹ 25,000)
= ₹ 25,000 – 1250
= ₹ 23,750
Therefore, total money earned by selling shares = ₹ 19,200 + ₹ 23,750
= ₹ 42,950
Then, total earning = money earned by selling shares + dividends earned
= ₹ (42,950 + 5,125)
= ₹ 48,075
Hence, Bhavana’s earnings from the transaction = ₹ (48,075 – 45,000)
= ₹ 3,075
14. Karan buys 125 shares of Rs 100 each of ‘Reliance Technologies Ltd.’ which pays a dividend of 6%. He buys them at such a price that he gets 4% of his money. At what price did Karan buy the share?
Answer
Let us assume that, Karan’s investment be y.
Then, face value of 125 shares = ₹ (100 × 125)
= ₹ 12,500
So, dividend for 125 shares = 6% of 12,500 = (6 × 12,500)/100 = ₹ 750
Karan gets ₹ 750 as dividend which is equal to 4% of money invested = 4y/100 = ₹ 750
4y = ₹ 75,000
⇒ y = 75,000/4
⇒ y = ₹ 18,750
Then, Karan invested ₹ 18,750
Number of shares bought by Karan = 125
Value of a share = ₹ 18,750/125
= ₹ 150
Therefore, Karan bought a share for ₹ 150.
15. Vikram bought 200 shares of Rs 25 each of ‘Calcutta Jute Co.’ paying 8% of dividend. Vikram bought them at such a price that he gets 10% of his money. At what price did he buy the share?
Answer
Let us assume that, Vikram’s investment be y.
Then, face value of 200 shares = ₹ (25 × 200)
= ₹ 5,000
So, dividend for 200 shares = 8% of ₹ 5,000 = (8 × 5000)/100 = ₹ 400
Vikram gets ₹ 400 as dividend which is equal to 10% of money invested,
10y/100 = ₹ 400
⇒ 10y = ₹ 40,000
⇒ y = 40,000/10
⇒ y = ₹ 4,000
Then, Vikram invested ₹ 4,000
Number of shares bought by Vikram = 200
Value of a share = ₹ 4,000/200
= ₹ 20
Therefore, Vikram bought a share for ₹ 20.
Exercise 4.2
1. Saurav invested 10%, 30% and 40% of his savings in buying shares of 3 different companies A, B and C which declared dividends of 12%, 15% and 16% respectively. If Saurav’s total income from dividends in Rs 3,025, find his savings and the amount invested in each company.
Answer
Let total savings be x.
2. Akansha invested 15%, 25% and 35% of her savings in buying shares of ‘Infosys’. ‘Wipro’ and ‘Reliance’ which declared dividends of 16%, 18% and 20% respectively. If her total income from dividends is Rs 52,125, find her savings and the amount invested in each company.
Answer
Let total saving be x.
3. Tarun invested Rs 24,000 and Rs 30,000 in buying Rs 100 at per shares of ‘Vam Organics’ and ‘Hero Honda’ which later declared dividend of 12% and 15% respectively. After collecting the dividends Tarun sold and Shares as their prices has fallen by Rs 5 and Rs 10 respectively. Find Tarun’s earnings from the above transactions.
Answer
Total investment = Rs (24,000 + 30,000) = Rs 54,000
4. Bhavana invested Rs 20,000 and Rs 25,000 in buying shares of ‘Bharati Telecom’ and ‘Satyam Infoways’ which later declared dividend of 10% and 12.5% respectively. After collecting the dividends Bhavana sells all her shares at a loss of 4% and 5% respectively on her investments. Find her total earnings.
Answer
Total investment = Rs (20,000 + 25,000) = Rs 45,000
5. Karan buys 125 shares of Rs 100 each of “Reliance Technologies Ltd.’ Which pays a dividend of 6%. He buys them at such a price that he gets 4% of his money. At what price did Karan buy the share?
Answer
Let Karan’s investment be x.
6. Vikram bought 200 shares of Rs 25 each of ‘Calcutta Jute Co.’. paying 8% of dividend. Vikram bought them at such a price that he gets 10% of his money. At what price did he buy the share?
Answer
Let Vikram’s investment be x.
7. Archana bought 250 shares of Rs 50 each of ‘Indal’ paying 12% of dividend. She bought them at such a price that she gets 15% return on her investment. At what share did she buy the shares?
Answer
Let Archana’s investment be x.
8. Which among these is a better investment:
(a) 12% at 125 or 16% at 150
(b) 16% at 80 or 18% at 120
(c) 15% at 180 or 12% at 75
(d) 18% at 120 or 22% at 150
(d) 18% at 120 or 22% at 150
(e) 12.5% at 125 or 7.5% at 80
Answer
(a) 12% at 125 or 16% at 150
9. 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.
Answer
In first case:
10. Amitesh had 400 shares of Rs 100 each of ‘Telco’ paying a dividend of 12.5%. He sold then at a market price of Rs 125 and invested the proceeds in Rs 50 shares of ‘Adani Motors’ available in the market at Rs 80 and paying a dividend of 16%. How many shares of Adani Motors did Amitesh buy and what is the change in his annual income?
Answer
In first case:
11. Mr Lele sold 250 shares of Rs 75 each of ‘IOCL’ paying 8% of dividend at Rs 112. He invested the Proceeds in buying Rs 125 shares of HPCL paying 8% of dividend available at Rs 140. Calculate the number of shares of HPCL that Mr Lele bought and the change in his annual income.
Answer
In first case:
12. Rohit had 1000 shares of Rs 125 each of New Delhi Times’ paying a dividend of 12%. He sold all of them at a market rate of Rs 150 and invested the proceeds in buying Rs 25 shares of BVL available at Rs 60 and paying 20% dividend. How many shares of BVLdis Rohit buy and what is the change in his annual income.
Answer
In first case,
13. Mr Lal wants to give a monthly schorship of Rs 225 to a poor student. How many 15%, Rs 100 shares of ‘Mercantile co-operative Bank’ should he purchase to realize his aim? What will be his investment if the market price of the share is Rs 120?
Answer
Let x be the no. of shares purchased by Mr. Lal.
14. Gayatri wants to have a monthly income of Rs 500. For this she purchased Rs 75 shares of ‘V.G. Electronic’ paying 20% dividend. How many shares
Answer
Let x be the no. of shares purchased by Gayatri.
Exercise 4.3
1. Ramesh had Rs 100 shares of ‘Bihar Steel’ paying 8% dividend. He sold them at a market price of Rs 130 and invested the proceeds in buying Rs 50 shares of ‘Jindal steel’ available at Rs 75 and paying 12% dividend. He thus increased the annual income by Rs 360. How many shares did Ramesh sell ?
Answer
For shares of ‘Bihar Steel’
2. Payal has Rs 125 shares of ‘Asian Chemical’ paying 12% dividend. She sold them at Rs 150 and invested the proceeds in Rs 50 shares of ‘Saras Chemicals’ at Rs 40 and paying 10% dividend. She thus increased her income by 825. Find the number of shares of ‘Asian chemical’ that Payal sold.
Answer
For shares of ‘Asian Chemical’
3. Anant has Rs 50 shares of ‘Esco paying 6% dividend. He sold them at a market price of Rs 80 and invested the proceeds in buying Rs 100 shares of ‘Y2K Software’ at Rs 150 and paying 11% dividend. He thus increased his annual income by Rs 2,150. How many shares of ‘Esco’ did he sell?
Answer
For shares of ‘Esco’:
4. Kritika wants to invest Rs 10,000 in shares of different companies such that the percentage return on her investment is 8%. She invested Rs 4,500 in 6% Rs 100 shares Rs 75, Rs 2,500 in 8% Rs 100 shares at par and the rest in 16% Rs 100 shares. Find the rate at which she bought the 16% shares.
Answer:
Money invested = Rs 10,000
5. Pramod wants to invest Rs 35,000 in shares such that the percentage return on his investment is 8.1/7%. He invested Rs 6,000 in 6% Rs 50 shares of ‘Lakme’ at Rs 40, Rs 15,000 in 8% Rs 100 shares of ‘Volta’ at Rs 125 and the remaining in 12% shares of ‘BPL’. At what rate did he buy the ‘BPL’ shares ?
Answer
Money invested = Rs 35,000
