# 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