A person invested Rs 8000 and Rs 10000 in buying shares of two companies which later on declared dividends of 12 % and 8% respectively. He collects the dividends and sells out all his shares at a loss of 2 % and 3% respectiuvely on the investment. Find his total gain from the above transaction.
Answer & explanation
Correct answer: option 1
The correct answer is option (1) : ₹ 1300
Amount invested in 1st company $= ₹8000$
Amount invested in 2nd company $= ₹10000$
Dividend received from 1st company = 12% of ₹ 8000$= ₹ 960$
Dividend received from 2nd company = 8% of ₹ 10000 $= ₹ 800 $
∴ Total dividend received from both companies $= ₹ 960+ ₹ 800= ₹ 1760 $
Loss on selling the share of 1st company = 2% of ₹ 8000 $= ₹ 160$
Loss on selling the share of 2nd company = 8% of ₹ 10000 $= ₹ 300$
∴ Loss on selling the shares of both company =$ ₹960$
∴ Total gain = $ ₹1760 - ₹ 460= ₹ 1300 $