Ramji invested ₹ 16,000 and ₹ 20,000 in buying shares of two companies. These companies declared dividends of 12 % and 8 % respectively. He collects the dividends and sells out all his shares at a loss of 2 % and 3 % respectively on his investment. Find his total gain from these two transactions. [No face value is given. Therefore, we assume that she shares are at par.]

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answer is A.

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Detailed Solution

Given that, Ramji spent ₹16,000 and ₹20,000 on stock in two companies. Dividends of 12% and 8% were announced by these companies, respectively.
We know that Total gain = profit on each share - loss on each share.
Therefore, profit on each share is,

= 12 % × 16000 + 8 % × 20000 = 12100 × 16000 + 8100 × 20000 = 1920 + 1600 = 3500

Also given, He receives the dividends and sells all of his shares for a loss of 2% and 3% on his investment, respectively. Therefore, loss on each share is,

= 2 % × 16000 + 3 % × 20000 = 2100 × 16000 + 3100 × 20000 = 320 + 600 = 920

We know that, total gain = profit on each share - loss on each share.
As a result, his total profit from these two transactions is = ₹3500 - ₹920 = ₹2600.
As a result, the total gain from these two transactions is ₹2600.
The correct option is 1).

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