Mr. Chaudhury invests Rs 20,800 in 6% Rs100 shares at a premium of 4% and Rs 14,300 in 10.5% Rs100 shares at a premium of 43%. Wha

Mr. Chaudhury invests Rs 20,800 in 6% Rs100 shares at a premium of 4% and Rs 14,300 in 10.5% Rs100 shares at a premium of 43%. What will be his total annual income from these shares?​

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  1. Answer:

    We will first find the individual income from his each investments and then take the sum of both of them to get his annual income from the shares.

    Finding the income from the investment of Rs. 20800 in 6%, Rs. 100 shares at Rs. 104:

    No. of shares = \frac{[Total\:Investment]}{[Market\:Value\:of\:1\:share]}

    [MarketValueof1share]

    [TotalInvestment]

    = \frac{20800}{104}

    104

    20800

    = 200

    Income obtained per share = \frac{6}{100}

    100

    6

    × 100 = Rs. 6

    ∴ Income obtained from 200 shares = 200 × Rs. 6 = Rs. 1200

    Finding the income from the investment of Rs. 14300 in 10.5%, Rs. 100 shares at Rs. 143:

    No. of shares = \frac{[Total\:Investment]}{[Market\:Value\:of\:1\:share]}

    [MarketValueof1share]

    [TotalInvestment]

    = \frac{14300}{143}

    143

    14300

    = 100

    Income obtained per share = \frac{10.5}{100}

    100

    10.5

    × 100 = Rs. 10.5

    ∴ Income obtained from 100 shares = 100 × Rs. 10.5 = Rs. 1050

    Finding the annual income from the shares:

    Therefore,

    The annual income obtained from the shares will be,

    = [Income obtained from 200 shares] + [Income obtained from 100 shares]

    = Rs. 1200 + Rs. 1050

    = Rs. 2250

    Thus, his annual income from the shares will be Rs. 2250.

    Step-by-step explanation:

    this will help u

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