Which is better investment: 6% Rs. 100 shares at Rs. 120 or 8% Rs. 10 shares at Rs. 15
Solution:
Let the investment in each case = Rs. 120 In the fist case,
Dividend on Rs. 120 = Rs. 6
In second case, Dividend on Rs. 10
A man invests Rs -10080 in 6% hundred- rupee shares at Rs. 112. Find his annual income. When the shares fall to Rs. 96 he sells out the shares and invests the proceeds in 10% ten-rupee shares at Rs. 8. Find the change in his annual income.
Solution:
Investment = Rs. 10080
Face value of each share = Rs. 100
Market value of each share = Rs. 112
Rate of dividend = 6%
Total income for the year
