A man bought 360 ten-rupee shares paying 12% per annum. He sold them when the price rose to Rs 21 and invested the proceeds in five0rupee shares paying $4(1/2)$ % per annum at Rs 3.5 per share. Find the annual change in his income.

₹54

The correct answer is option (4) :₹54

Dividend received on 1 share $=₹\frac{12}{100}×10$

∴ Dividend received on 360 shares $= ₹(1.2×360)$

$=₹432$

Man sold his shares at ₹21 each the sale value of his shares

$=₹(21 ×360)$

$= ₹ 7560$

He invested the proceeds in ₹5 share at 3.5 each.

∴  No. of shares purchased $=\frac{₹7560}{₹3.5}=2160$

Dividend received on 1 shares of $₹3.5=₹\left(\frac{4.5}{100} ×5\right)$

$=₹0.225$

Dividend received on 2160 shares $=₹(0.225×2160)$

$=₹486$

∴ Change is annual income $=₹486-₹432$

$=₹54$