Subjects finance

Compound Interest Shares 731C5C

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1. **Problem statement:** Mr. Samantha deposits 200000 rupees in a bank for 2 years at an annual compound interest rate of 12%. We need to find the total amount after 2 years. 2. **Formula for compound interest:** $$ A = P \left(1 + \frac{r}{100}\right)^n $$ where $A$ is the amount, $P$ is the principal, $r$ is the annual interest rate, and $n$ is the number of years. 3. **Calculate total amount after 2 years:** $$ A = 200000 \left(1 + \frac{12}{100}\right)^2 = 200000 \times (1.12)^2 = 200000 \times 1.2544 = 250880 $$ 4. **He keeps 10880 rupees for his needs. Find the balance for shares:** $$ \text{Balance} = 250880 - 10880 = 240000 $$ 5. **Find the number of shares bought at 40 rupees per share:** $$ \text{Number of shares} = \frac{240000}{40} = 6000 $$ 6. **He received 48000 rupees as annual dividend. Find dividend per share:** $$ \text{Dividend per share} = \frac{48000}{6000} = 8 $$ 7. **He gained 90000 rupees as capital gain by selling all shares. Find selling price per share:** First, find the total cost price of shares: $$ \text{Cost price} = 240000 $$ Total selling price: $$ \text{Selling price} = 240000 + 90000 = 330000 $$ Selling price per share: $$ \frac{330000}{6000} = 55 $$ **Final answers:** (i) Total amount after 2 years = 250880 (ii) Number of shares bought = 6000 (iii) Dividend per share = 8 (iv) Selling price per share = 55