Divide Rs. 101520 into two parts such that if one part is invested in 8% Rs. 100 shares at 8% discount and the other in 9% Rs. 50 shares at 8% premium, the annual incomes are equal.
Solution:
Total investment = Rs. 101520
Let investment in first part = x
and in second part = (101520 – x)
Market value of first kind of shares = Rs. 100 – Rs. 8
= Rs. 92
and rate of dividend = 8%
A man buys Rs. 40 shares of a company which pays 10% dividend. He buys the shares at such a price that his profit is 16% on his investment. At what price did he buy each share?
Solution:
Face value of each share = Rs. 40
Dividend = 10%
Gain on investment = 10%
