33) A man sold some?100 shares paying 10% dividend at a discount of 25

1.	33) A man sold some?100 shares paying 10% dividend at a discount of 25% and investedhis income by2000. Find the number of shares sold by him.
Answer» Let number of shares sold be s Nominal value = 100 Rate of dividend = 10% Hence Annual income(A) = Rate of dividend x nominal value x number of shares => A = 10/100 x 100 x s = 10s.....................eq1 As each share is sold at a discount of 25% selling price of one share = Rs 75 selling price of s number of shares = Rs 75s Given that nominal value = 100 Market value = 80 rate of dividend = 16 % Number of shares bought = selling price of old shares/market value = 75s/80 Hence new annual income (B) B = Rate of dividend x nominal value x number of shares => B = 16/100 x 100 x 75s/80 => B = 15s Given that his annual income increases by Rs 200 => 15s - 10s = 200 => 5s = 200 s = 40 Hence number of shares sold by him is 40

33) A man sold some?100 shares paying 10% dividend at a discount of 25% and investedhis income by2000. Find the number of shares sold by him.

Answer»

Let number of shares sold be s

Nominal value = 100

Rate of dividend = 10%

Hence

Annual income(A) = Rate of dividend x nominal value x number of shares

=> A = 10/100 x 100 x s = 10s.....................eq1

As each share is sold at a discount of 25%

selling price of one share = Rs 75

selling price of s number of shares = Rs 75s

Given that nominal value = 100

Market value = 80

rate of dividend = 16 %

Number of shares bought = selling price of old shares/market value

= 75s/80

Hence new annual income (B)

B = Rate of dividend x nominal value x number of shares

=> B = 16/100 x 100 x 75s/80

=> B = 15s

Given that his annual income increases by Rs 200

=> 15s - 10s = 200

=> 5s = 200

s = 40

Hence number of shares sold by him is 40