Which is better investment: 11% stock at 143 or 9¾% stock at 117?

Q: Which is better investment: 11% stock at 143 or 9¾% stock at 117?

Let investment in each case be Rs. (143 x 117). Income in 1st case = Rs. ❨ 11 x 143 x 117 ❩ = Rs. 1287. 143 Income in 2nd case = Rs. ❨ 39 x 143 x 117 ❩ = Rs. 1394.25 4 x 117 Clearly, 9 3 % stock at 117 is better. 4

11% stock at 143
9 3 % stock at 117 4
Both are equally good
Cannot be compared, as the total amount of investment is not given.

Correct Answer: 9 3 % stock at 117 4

Explanation:

Let investment in each case be Rs. (143 x 117).

Income in 1^st case = Rs.	❨	11	x 143 x 117	❩	= Rs. 1287.
		143

Income in 2^nd case = Rs.	❨	39	x 143 x 117	❩	= Rs. 1394.25
		4 x 117

Clearly, 9	3	% stock at 117 is better.
	4

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