A person has deposited ₹ 13200 in a bank which pays 14% interest. He withdraws the money and invests in ₹ 100 stock at ₹ 110 which pays a dividend of 15%. How much does he gain or lose?

### Concept & Comparative Investment Return To find a gain or loss when switching investments, calculate the absolute returns of both scenarios independently and find their difference. $$ \text{Net Gain/Loss} = \text{Income from Stock} - \text{Income from Bank} $$ ### Step-by-Step Solution * **Given:** Principal = ₹ 13200, Bank Interest Rate = 14%, Stock Face Value = ₹ 100, Stock Market Value = ₹ 110, Dividend Rate = 15%. * **Step 1: Calculate the Bank Income.** Bank Interest = 14% of ₹ 13200 = $0.14 \times 13200 = 1848$. * **Step 2: Calculate the Stock Income.** First, find the number of shares purchased: $\frac{13200}{110} = 120$ shares. Next, find the dividend per share: 15% of ₹ 100 = ₹ 15. Total Stock Income = $120 \times 15 = 1800$. * **Step 3: Compare Incomes.** Difference = Stock Income - Bank Income = $1800 - 1848 = -48$. Since the result is negative, the person experiences a loss. ### Exam Strategy & Shortcut Compare the effective yield percentages. Bank yield is 14%. Stock yield is $\frac{15}{110} \times 100 = \frac{150}{11} \approx 13.63\%$. Since the stock yield is lower, it's clearly a loss, eliminating "Gain" options immediately. ### Common Pitfall Assuming a 15% dividend rate is better than a 14% bank interest rate without accounting for the fact that the stock is bought at a premium (110). The premium dilutes the actual yield below the nominal 15%. ### Final Answer Therefore, the correct answer is **Loses ₹ 48**.