₹100 shares of a company giving 10% dividend are selling at ₹150. Mr. Saha invests ₹ 18,000 to buy these shares. He sells 80% of his shares after one year. Find :
(a) the number of shares he purchased.
(b) the number of shares he sold.
(c) his annual income from the remaining 20% shares he still holds.
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(a) Given,
Total investment = ₹ 18,000
Market value = ₹ 150
N.V = ₹ 100
By formula,
⇒ Total investment = Number of shares × Market value of one share
⇒ 18000 = Number of shares × 150
⇒ Number of shares = $\frac{18000}{150}$
⇒ Number of shares = 120.
Hence, the number of shares Mr.Saha purchased = 120.
(b) Number of shares sold by Mr Saha = 80% of 120
= $\frac{80}{100} \times 120$
= 0.8 × 120
= 96.
Hence, the number of shares Mr.Saha sold = 96.
(c) Number of shares remaining = Total no. of shares - No. of shares sold = 120 - 96 = 24.
By formula,
Annual income = Number of shares × Rate of dividend × N.V. of 1 share
= 24 × $\frac{10}{100} \times 100$
= ₹ 240.
Hence, annual income from remaining shares = ₹ 240.