Question

Gagan invested 80% of his savings in 10% Rs 100 shares at 20% premium and the rest of his savings in 20% Rs 50 shares at 20% discount. If his incomes from these shares is Rs 5,600, calculate : his investment in shares on the whole.

Answer 1

To calculate Gagan's investment in shares on the whole, we can determine the amount he invested in each type of shares and calculate his income from these shares.

Step-by-step explanation:

To calculate Gagan's investment in shares on the whole, we need to determine the amount he invested in each type of shares.

Let's assume his total savings were Rs 100. Since he invested 80% in 10% Rs 100 shares at 20% premium, he invested Rs 80 in these shares. The premium amount is 20% of Rs 100, which is Rs 20. So the cost per share is Rs 120. Therefore, he bought Rs 80 / Rs 120 = 0.67 shares.

The remaining savings were 20%, which is Rs 20. He invested this amount in 20% Rs 50 shares at a 20% discount. The discount amount is 20% of Rs 50, which is Rs 10. So the cost per share is Rs 40. Therefore, he bought Rs 20 / Rs 40 = 0.5 shares.

To calculate his income from these shares, we multiply the number of shares by the respective rates: (0.67 shares * Rs 120) + (0.5 shares * Rs 40) = Rs 80.4 (approximately).

Therefore, Gagan's investment in shares on the whole is Rs 100.