By selling Rs. 100 stock , cash realised =
By selling Rs. 2400 stock, cash realised = = Rs 2298.
Number of shares = =120.
Face value = Rs.(100 x 120) = Rs.12000.
Annual income = Rs (5/100*12000) = Rs. 600
To earn Rs. 135, investment = Rs. 1620.
To earn Rs. 8, investment = = Rs. 96.
Market value of Rs. 100 stock = Rs. 96.
CP. = = Rs.96.25
To obtain Rs. 10, investment = Rs. 96.
To obtain Rs. 650, investment = = Rs. 6240.
For an income of Rs. 8, investment = Rs. 100.
For an income of Rs 6, investment =Rs. (100/8*6) = Rs. 75
Market value of Rs. 100 stock = Rs. 75.
By investing Rs 128, income derived = Rs. 16
By investing Rs. 100, income derived =Rs. (16/128*100) = Rs.12.5
Interest obtained = 12.5%
S.P of Rs. 5000 stock = = Rs. 7800.
Income from this stock = = Rs. 600.
Let investment in 8 % stock be x and that in 9 % stock = (7800 - x).
Therefore,
Therefore, Money invested in 8 % stock at 90 = Rs. 3600.
Money invested in 9 % at 108 = Rs. (7800-3600) = Rs. 4200.
To earn Rs. 10, money invested = Rs. 100.
To earn Rs. 12, money invested = = Rs. 120.
Market value of Rs. 100 stock = Rs. 120.
Michel earns Rs. 135 by investing Rs. 1620
To earn Rs. 8 how much he have to invest...?
= (8 x 1620)/135 = Rs. 96
Let investment in each case be Rs. (143 x 117).
Income in 1st case = Rs.
x 143 x 117 = Rs. 1287.
Income in 2nd case = Rs.
x 143 x 117= Rs. 1394.25
Clearly, 9 3/4% stock at 117 is better.
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