Name: What the Heck Are Mutual Funds?
Uploaded: 2019-07-19
Duration: 1 min 55 s
Description: Mutual funds are an important option in saving for retirement, and most people don't know what they are--even if they already use them! Let's start at the beginning.

Question

Divide

₹ 20304

into two parts such that if one part is invested in

9 % ₹ 50

shares at

8 %

premium and the other part is invested in

8 % ₹ 25

shares at

8 %

discount, then the annual incomes from both the investments are equal.

Accepted Answer

Total amount $= Rs 20304$

Let amount invested in $9 %$ $Rs 50$ at $8 %$

premium $= x$

Then amount invested in $8 %$ $Rs 25$ at $8 %$

Discount $= 20304 - x$

Income from both investments are equal Now income from first type of shares

$= \frac{x \times 9}{100 + 8} = \frac{9 x}{108} = \frac{x}{12}$

Income from second type of shares

$= \frac{(20304 - x) \times 8}{100 - 8}$

$= \frac{(20304 - x) \times 8}{92}$

$= \frac{2 (20304 - x)}{23}$

$∵$ In both cases, annual income is same

$∴ \frac{x}{12} = \frac{2 (20304 - x)}{23}$

$\Rightarrow 23 x = 24 (20304 - x)$ (By cross multiplication)

$\Rightarrow 23 x = 24 \times 20304 - 24 x$

$\Rightarrow 23 x + 24 x = 24 \times 20304$

$\Rightarrow 47 x = 24 \times 20304$

$∴ x = \frac{24 \times 20304}{47} = 10368$

$∴$ Amount invested in first kind of shares

$= ₹ 10368$

and in second kind of shares

$= ₹ 20304 - ₹ 10368 = ₹ 9936$

Hence, this is the required answer.

Divide $₹ 20304$ into two parts such that if one part is invested in $9 % ₹ 50$ shares at $8 %$ premium and the other part is invested in $8 % ₹ 25$ shares at $8 %$ discount, then the annual incomes from both the investments are equal.

Important Questions on Shares and Dividends

Learn and Prepare for any exam you want !

Divide ₹20304 into two parts such that if one part is invested in 9% ₹50 shares at 8% premium and the other part is invested in 8% ₹25 shares at 8% discount, then the annual incomes from both the investments are equal.

Important Questions on Shares and Dividends

Learn and Prepare for any exam you want !

Divide $₹ 20304$ into two parts such that if one part is invested in $9 % ₹ 50$ shares at $8 %$ premium and the other part is invested in $8 % ₹ 25$ shares at $8 %$ discount, then the annual incomes from both the investments are equal.