Question

A man invested \[Rs.{\text{ }}45000\] in \[15\% \]Rs. 100 shares quoted at \[Rs.{\text{ }}125\] when the market value of these shares rose to \[Rs.{\text{ }}140\], he sold some shares, just enough to raise \[Rs.{\text{ }}8400\]. Calculate the number of shares he still holds.

Answer 1

Hint: Here, in this problem, the number of shares that are left or are still held by the person is to be found out. It can easily be calculated, if the number of shares sold and number of shares purchased are obtained. So, first of all we will have to find no. of shares purchased by him & then no. of shares he sold after the rise of price. Then by subtracting no. of shares he sold after price rise from total no. Of shares he purchased we can get a number of shares he still holds. i.e., $\therefore $number of share he still hold = (number of shares purchased) – (number of shares sold)

Complete step-by-step answer:
Given: amount invested by the man = \[Rs.{\text{ }}45000\]
Cost of each quoted shares =\[Rs.{\text{ }}125\]
$\therefore $so, number of shares purchased is given by $ = \dfrac{{45000}}{{125}} = 360$
Now when the market value of the shares rose,
Cost of each share after rise of share price = \[Rs.{\text{ }}140\]
Amount he wants to get = \[Rs.{\text{ }}8400\]
So, number of shares sold is given by $ = \dfrac{{8400}}{{140}} = 60$
$\therefore $number of share he still hold = (number of shares purchased) – (number of shares sold)
$ = 360 - 60 = 300$

Note: In this type of problem, firstly the number of shares purchased and the number of shares sold are to be calculated, so that the number of shares left can be easily obtained. If dividend is to be found on the remaining share, then we have to multiply the number of shares left to Rs. 100 shares at a given percentage quoted.
Basic formula used here is – Number of shares = Total amount of money/Cost price of each share.
Do the calculations carefully to avoid any silly mistake even after knowing the procedure to do the problem. Don’t get confused because of Rs .100 in the question because that is the cost price before that man invested so it doesn’t have any role in getting the answer for what you are asked for.