A retired man sells out Tk. 7500 of a 10% stock at Tk. 105.50 and invests the proceeds in 14% stock at Tk. 124.50. What is the change in income if he pays a service charge of 0.5% of the face value on each transaction ?

Number of shares sold = 7500/100
= 75

Proceeds from sale of Tk. 7500 stock
= Tk. [(105.50 - 0.5) × 75]
= Tk. 7875

Number of new shares purchased
= 7875/)124.50 + 0.50
= 7875/125
= 63

Original income
= 10% of Tk. 7500
= Tk. 750

New income
= 14% of Tk. 6300
= Tk. {(14/100) × 6300}
= Tk. 882

∴ Change in income
= Tk. (882 - 750)
= Tk. 132