Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
1.1k views
in Financial Mathematics by (47.8k points)
closed by

Babu sold some Rs 100 shares at a 10% discount and invested his sales proceeds in 15% of Rs 50 shares at Rs 33. Had he sold his shares at a 10% premium instead of a 10% discount, he would have earned Rs 450 more. Find the number of shares sold by him.

1 Answer

+1 vote
by (47.4k points)
selected by
 
Best answer

Let the number of shares sold by Babu be x. 

The face value of a share is Rs 100.

He sold a 10% discount; the selling price of one share Rs 90. 

The selling price of x shares = Rs 90x 

He bought a share of face value Rs 50 and the number of shares 33. 

∴ Number of shares bought for the amount Rs 90x i.e., \(\frac{90x}{33}\)

∴ Face value of 50 shares = Cost of one share x Number of share

= 50 x \(\frac{90x}{33}\)

The dividend is 15%. 

∴ Income = \(\frac{15}{100}\) x Face value of 50 shares 

\(\frac{15}{100}\times50\times\frac{90x}{33}\)

\(\frac{225x}{11}\)

Suppose he sold his shares at 10% premium instead of 10% discount, the market value of one share is Rs 110. 

Selling price of x shares = 110 x (x) = 110x 

Number of shares bought for Rs 33 = \(\frac{110x}{33}\)

Face value of 50 shares = \(\frac{110x}{33}\) x 50 

Income = \(\frac{15}{100}\times\frac{110x}{33}\) x 50 = 25x 

Change Income = Rs 450

x = \(\frac{450}{50}\) x 11 = 9 x 11 = 99 share

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

...