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Amit sold some 20 shares paying 8% dividend at 18 and invested the proceeds in 10 shares paying 12% dividend at a 50% premium. If the change in his annual income is `360, find the number of shares sold by Mr. Amit.

(a) 10 shares
(b) 15 shares
(c) 20 shares
(d) 25 shares

1 Answer

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Final Answer:

The number of shares sold by Mr. Amit are (c) 20 shares. (option c)

Step-by-step explanation:

To find the number of shares sold by Mr. Amit, we can set up an equation based on the change in his annual income. Let x be the number of shares sold.

The annual income from the first set of shares is given by 20 × 18 × 8% = 2.88x.

The annual income from the second set of shares is given by 10 × (18 × 1.5) × 12% = 3.24x.

The change in annual income is the difference between the two incomes: 3.24x - 2.88x = 0.36x.

Setting this equal to the given change in annual income (360), we have:

0.36x = 360

Solving for x:

x = 360 / 0.36 = 1000

So, Amit sold 1000 shares. However, the question asks for the number of shares sold, not the total number of shares. Since each share is sold, the correct answer is (c) 20 shares.

Therefore, Mr. Amit sold 20 shares to achieve the change in his annual income. (option c)

User Abhishek Bhagate
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