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**Hint**: Nominal value \[\left( {N.V} \right)\]is the total value of all the shares, we get dividends on the nominal value of the shares which is called our income from the shares.

Useful formula:

Nominal value \[\left( {N.V} \right)\] $ = $ no. of shares $ \times $ price of one share

Dividend \[ = \] rate $ \times $ nominal value

**:**

__Complete step-by-step answer__Given data:

Total shares man have $ = 400 $

Price of one share $ = Rs.20 $

Dividend rate $ = 5\% $

Sells the shares at $ = Rs.18 $

Bought the shares $ (Rs.10) $ at $ Rs.12 $ a $ 7\% $ rate

Nominal value of $ 400 $ shares

$

= 400 \times 20 \\

= Rs.8000 \\

$

Dividend from the shares at $ 5\% $

$

= 5\% ofRs.8000 \\

= \dfrac{5}{{100}} \times 8000 \\

= Rs.400 \\

$

He sells $ 400 $ shares at $ Rs.18 $ so the nominal value will be

$

= 400 \times 18 \\

= Rs.7200 \\

$

Further, he buys $ (Rs.10) $ shares at $ Rs.12 $

Total no. of share of $ Rs.12 $

$

= \dfrac{{7200}}{{12}} \\

= 600 \\

$

So 600 shares of $ (Rs.10) $ did he buy

Dividend at $ 7\% $ will be

$

= 7\% of600 \\

= \dfrac{7}{{100}} \times 600 \\

= Rs.420 \\

$

Change in income will be

$

= 420 - 400 \\

= Rs.20 \\

$

Thus he bought a total $ 600(Rs.10) $ shares and the change in his income is Rs.20.

**Note**: Nominal value is also called face value of the shares at which shares are sold and bought and dividend is always calculated on face value of the shares.

Note: When the percentage sign is removed then the number is divided by $ 100 $ . And according to \[BODMAS\] rule, OF means multiply.

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