Final answer:
To determine the original number of shares sold before depreciation, we reverse the compound depreciation formula and find that 40 shares at Rs.1,000 each were the original amount before a 5% per annum depreciation over 2 years resulted in the present value of Rs.36,100.
Step-by-step explanation:
The student asked about calculating the original number of shares based on the present value after compound depreciation. To find the original cost of shares before depreciation, we need to reverse the compound depreciation process. The formula to calculate the original price before depreciation is:
Original Price = Present Value / (1 - Rate of Depreciation)^Number of Years
Given a present value of Rs.36,100, a depreciation rate of 5% per annum, and a time period of 2 years, the calculation is as follows:
Original Price = Rs.36,100 / (1 - 0.05)^2
Original Price = Rs.36,100 / (0.95)^2
Original Price = Rs.36,100 / 0.9025
Original Price = Rs.40,000
Since the shares were sold at Rs.1,000 per share, we divide the original total cost by the price per share to find the number of shares:
Number of Shares = Rs.40,000 / Rs.1,000 per share
Number of Shares = 40
Therefore, 40 shares were sold before 2 years at Rs.1,000 per share.