Question Details

Read the data carefully and answer the questions.



Note: (i) Market value = Total number of shares × price of one share
(ii) Number of shares increased by 20% from 2001 to 2002 and price of share decreased by 5% from 2002 to 2003.
(iii) Price of share decreased by 12% from 2005 to 2006 and number of shares decreased by 10% 2005 to 2006.

Find the ratio of total market value received in 2005 to that of in 2003.

Options

A

171 : 200

B

250 : 161

C

250 : 171

D

171 : 250

E

250 : 151

Show Answer

Correct Answer :

Option C

250 : 171

Solution :

The correct option is 250 : 171.

To find the ratio of the total market value received in 2005 to that in 2003, we need to extract the relevant data from the two charts and apply the given notes.

1. Image Analysis and Data Extraction

From the first bar chart (Total shares):
- Total shares in 2001 = 10,000
- Total shares in 2003 = 30,000
- Total shares in 2005 = 25,000

From the second bar chart (Price per share in Rs.):
- Price per share in 2002 = Rs. 75 (halfway between 70 and 80)
- Price per share in 2006 = Rs. 110

2. Calculate Market Value in 2005

According to Note (iii):
The price of a share decreased by 12% from 2005 to 2006. Let the price of a share in 2005 be P2005.

P2006 = P2005 × ( 1 - 0.12 )
110 = P2005 × 0.88
P2005 = 110 0.88 = Rs. 125

Using Note (i): Market value = Total number of shares × price of one share.
For 2005:
Market Value in 2005 = 25,000 × 125 = Rs. 3,125,000

3. Calculate Market Value in 2003

According to Note (ii):
The price of a share decreased by 5% from 2002 to 2003. Let the price of a share in 2003 be P2003.

P2003 = P2002 × ( 1 - 0.05 )
P2003 = 75 × 0.95 = Rs. 71.25

For 2003:
Market Value in 2003 = 30,000 × 71.25 = Rs. 2,137,500

4. Find the Ratio

Now, we find the ratio of total market value received in 2005 to that in 2003:
Ratio = Market Value in 2005 Market Value in 2003 = 3,125,000 2,137,500

Simplifying the fraction by dividing both terms by 12,500:
3,125,000 / 12,500 2,137,500 / 12,500 = 250 171

Thus, the ratio is 250 : 171.

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