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

1 thought on “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”

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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