ten-rupee shares at R8. Find the changein his annual incor25 A man bought 360 ten-rupee shares paying 12% per annum. He sold them when thep s paying 4o% per annumq1 He sells out/price rose to21 and invested the proceeds in five-rupee shar?n at3.5 per share. Find the annual change in his income

ten-rupee shares at R8. Find the changein his annual incor25 A man bou

1.	ten-rupee shares at R8. Find the changein his annual incor25 A man bought 360 ten-rupee shares paying 12% per annum. He sold them when thep s paying 4o% per annumq1 He sells out/price rose to21 and invested the proceeds in five-rupee shar?n at3.5 per share. Find the annual change in his income
Answer» 1st case Nominal value of 1 share = Rs. 10 Nominal value of 360 shares = Rs. 10 × 360 = Rs. 3,600 Market value of 1 share = Rs. 21 Market value of 360 shares = Rs. 21 × 360 = Rs. 7,560 Dividend% = 12% Dividend = 12% of Rs. 3600=12/100*3600=rs 4322nd caseNominal value of 1 share=rs 5market value of 1 share =rs 3.50no of shares purchased=7560/3.50=2160sharesNominal value of 2160 shares = Rs. 5 × 2160 = Rs. 10,800 Dividend% = 4.5% Dividend = 4.5% of Rs. 10,800 = (4.5/100) ×10,800= Rs. 486 Annual change in income = Rs. 486 – Rs. 432 = Rs. 54 increase