Maharashtra Board Class 10 Maths Chapter 4 Financial Planning Set 4.3 Solutions

Question 1. Complete the following table by writing suitable numbers and words.

Answer: i. Here, share is at par.
\( \therefore \) MV = FV
\( \therefore \) MV = Rs. 100

ii. Here, Premium = Rs. 500, MV = Rs. 575
\( \therefore \) FV + Premium = MV
\( \therefore \) FV + 500 = 575
\( \therefore \) FV = 575 - 500
\( \therefore \) FV = Rs. 75

iii. Here, FV = Rs. 10, MV = Rs. 5
\( \therefore \) FV > MV
Share is at discount.
FV - Discount = MV
\( \therefore \) 10 - Discount = 5
\( \therefore \) 10 - 5 = Discount
Discount = Rs. 5

In simple words: This question requires completing a table based on the relationship between Face Value (FV), Market Value (MV), and whether the share is at par, premium, or discount. If a share is at par, MV=FV. If at premium, MV=FV+Premium. If at discount, MV=FV-Discount.

🎯 Exam Tip: Understanding the basic definitions of Face Value (FV), Market Value (MV), premium, discount, and par is crucial for solving problems in financial planning.

Question 2. Mr. Amol purchased 50 shares of Face value Rs. 100 when the Market value of the share was 80. Company had given 20% dividend. Find the rate of return on investment.
Answer: Solution:
Here, MV = Rs. 80, FV = Rs. 100,
Number of shares = 50, Rate of dividend = 20%
\( \therefore \) Sum invested = Number of shares \( \times \) MV
= 50 \( \times \) 80
= Rs. 4000

Dividend per share = 20% of FV
\[ = \frac{20}{100} \times 100 = \text{Rs. } 20 \]
\( \therefore \) Total dividend of 50 shares = 50 \( \times \) 20
= Rs. 1000
Now, rate of return \( = \frac{\text{Total dividend}}{\text{Sum invested}} \times 100 \)
\[ = \frac{1000}{4000} \times 100 \]
= 25%
\( \therefore \) Rate of return on investment is 25%. In simple words: To find the rate of return, first calculate the total investment (number of shares multiplied by market value) and the total dividend earned (dividend percentage on face value multiplied by number of shares). Then, divide the total dividend by the total investment and multiply by 100 to get the percentage.

🎯 Exam Tip: Always clearly state the formulas used for calculating sum invested, dividend, and rate of return. Ensure correct values are substituted for FV, MV, and dividend rates.

Question 3. Joseph purchased following shares, Find his total investment.
Company A: 200 shares, FV = Rs. 2, Premium = Rs. 18.
Company B: 45 shares, MV = Rs. 500
Company C: 1 share, MV = Rs. 10,540
Answer: Solution:
For company A:
FV = Rs. 2, premium = Rs. 18,
Number of shares = 200
\( \therefore \) MV = FV+ Premium
= 2 + 18
= Rs. 20
Sum invested = Number of shares \( \times \) MV
= 200 \( \times \) 20
= Rs. 4000

For company B:
MV = Rs. 500, Number of shares = 45
Sum invested = Number of shares \( \times \) MV
= 45 \( \times \) 500 = Rs. 22,500

For company C:
MV = Rs. 10,540, Number of shares = 1
\( \therefore \) Sum invested = Number of shares \( \times \) MV
= 1 \( \times \) 10540
= Rs. 10,540
\( \therefore \) Total investment of Joseph
= Investment for company A + Investment for company B + Investment for company C
= 4000 + 22,500 + 10,540
= Rs. 37040
\( \therefore \) Total investment done by Joseph is Rs. 37,040. In simple words: To find the total investment, calculate the investment for each company separately by multiplying the number of shares by their respective market values (adjusting for premium if applicable). Then, sum up the individual investments.

🎯 Exam Tip: Break down complex problems into smaller, manageable parts. Clearly calculate the market value for each company's shares before computing the investment for that company.

Question 4. Smt. Deshpande purchased shares of FV 5 at a premium of 20. How many shares will she get for 20,000?
Answer: Solution:
Here, FV = Rs. 5, Premium = Rs. 20,
Sum invested = Rs. 20,000
\( \therefore \) MV = FV + Premium
= 5 + 20
\( \therefore \) MV = Rs. 25
Now, sum invested = Number of shares \( \times \) MV
\( \therefore \) Number of shares \( = \frac{\text{Sum invested}}{\text{MV}} \)
\[ = \frac{20,000}{25} \]
= 800
\( \therefore \) Smt. Deshpande got 800 shares for Rs. 20,000. In simple words: To find the number of shares purchased, first calculate the market value of one share (face value plus premium). Then, divide the total sum invested by the market value per share.

🎯 Exam Tip: Remember that investment calculations are always based on the Market Value (MV) of the share, not the Face Value (FV), unless specified otherwise. Premium increases the MV, while discount decreases it.

Question 5. Shri Shantilal has purchased 150 shares of FV Rs. 100, for MV of Rs. 120. Company has paid dividend at 7%. Find the rate of return on his investment.
Answer: Solution:
Here, FV = Rs. 100, MV = Rs. 120
Dividend = 7%, Number of shares = 150
\( \therefore \) Sum invested = Number of shares \( \times \) MV
= 150 \( \times \) 120 = Rs. 18000
Dividend per share = 7% of FV
\[ = \frac{7}{100} \times 100 = \text{Rs. } 7 \]
\( \therefore \) Total dividend of 150 shares
= 150 \( \times \) 7 = Rs. 1050
Total dividend
Now, rate of return \( = \frac{\text{Total dividend}}{\text{Sum invested}} \times 100 \)
\[ = \frac{1050}{18000} \times 100 = 5.83\% \]
\( \therefore \) Rate of return on investment is 5.83%. In simple words: First calculate the total amount invested (shares times market value). Then, find the total dividend received (dividend rate on face value times number of shares). Finally, divide the total dividend by the total investment and multiply by 100 to get the percentage rate of return.

🎯 Exam Tip: Note that dividend is always calculated on the Face Value (FV), while the sum invested is calculated using the Market Value (MV). Be careful not to interchange these values.

Question 6. If the face value of both the shares is same, then which investment out of the following is more profitable?
Company A : dividend 16%, MV = Rs. 80,
Company B : dividend 20%, MV = Rs. 120.
Answer: Solution:
Let the face value of share be x.
For company A:
MV = Rs. 80, Dividend = 16%
Dividend = 16% of FV
\[ = \frac{16}{100} \times x = 0.16x \]
Rate of return \( = \frac{\text{Dividend}}{\text{Sum invested}} \times 100 \)
\[ = \frac{0.16x}{80} \times 100 = 0.2x \]
For company B:
MV = 120, Dividend = 20%
Dividend = 20% of FV
\[ = \frac{20}{100} \times x = 0.2x \]
Rate of return \( = \frac{\text{Dividend}}{\text{Sum invested}} \times 100 \)
\[ = \frac{0.2x}{120} \times 100 = \text{Rs. } 0.17x \]
\( \therefore \) Rate of return of company A is more.
\( \therefore \) Investment in company A is profitable. In simple words: To compare profitability, calculate the rate of return for each company using a common face value (e.g., 'x'). The company with the higher rate of return on investment is more profitable.

🎯 Exam Tip: When comparing investments, always calculate and compare the 'rate of return' rather than just dividends or market values, as the rate of return considers both the income and the initial investment.

Question 1. Smita has invested Rs. 12,000 and purchased shares of FV Rs. 10 at a premium of Rs. 2. Find the number of shares she purchased. Complete the given activity to get the answer.
Answer: Solution:
FV = Rs. 10, Premium = Rs. 2
\( \therefore \) MV = FV + Premium
\[ = 10 + 2 = \text{Rs. } 12 \]
\( \therefore \) No. of shares \( = \frac{\text{Total investment}}{\text{MV}} = \frac{12000}{12} \)
= 1000 shares
Ans: Smita has purchased 1000 shares. In simple words: To find the number of shares purchased, first determine the market value (MV) of one share by adding the premium to the face value (FV). Then, divide the total investment by this market value per share.

🎯 Exam Tip: For "complete the activity" type questions, show all intermediate steps clearly. Ensure calculations for Market Value are correct before proceeding to find the number of shares.