To produce an annual income of ₹ 1200 from a 12% stock at 90, the amount of stock needed is

### Concept & "Amount of Stock" In financial aptitude questions, "amount of stock" strictly refers to the total Face Value of the stock required, NOT the cash investment required to purchase it. $$ \text{Total Income} = \left( \frac{\text{Amount of Stock (Face Value)}}{100} \right) \times \text{Dividend Rate} $$ ### Step-by-Step Solution * **Given:** Target Income = ₹ 1200, Dividend Rate = 12%, Market Value = ₹ 90. * **Step 1: Realize the market value is irrelevant.** Since we are asked for the "amount of stock" (Face Value), the market quotation of 90 is distractor information. * **Step 2: Setup the equation.** $1200 = \text{Amount of Stock} \times \left( \frac{12}{100} \right)$ * **Step 3: Solve for Amount of Stock.** $\text{Amount of Stock} = \frac{1200 \times 100}{12}$ $\text{Amount of Stock} = 100 \times 100 = 10,000$ ### Exam Strategy & Shortcut Income is exactly 12% of the Face Value. If 12% represents 1200, then 1% represents 100. Thus, 100% (the total Face Value) represents 100 * 100 = 10,000. ### Common Pitfall Calculating the cash investment instead of the stock amount. The investment would be $(10000 \div 100) \times 90 = 9000$, which is a different metric entirely (though purposefully omitted from the options to force a second guess). ### Final Answer Therefore, the correct answer is **₹ 10,000**.