Stocks And Shares - Study Mode

[#1] In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:
Correct Answer

(B) Rs. 6240

Explanation

Solution: To obtain Rs. 10, investment = Rs. 96. To obtain Rs. 650, $$eqalign{
& ext{investment} = Rs.,left( {frac{{96}}{{10}} imes 650}
ight) cr
& ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, = Rs.,6240 cr} $$

[#2] A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being $$13frac{1}{2}$$. The rate of interest obtained is:
Correct Answer

(C) 15%

Explanation

Solution: $$eqalign{
& { ext{Investment}} cr
& = Rs.,left[ {20 imes left( {50 - 5}
ight)}
ight] cr
& = Rs.,900. cr
& { ext{FaceValue}} cr
& = Rs.,left( {50 imes 20}
ight) cr
& = Rs.,1000. cr
& { ext{Dividend}} cr
& = Rs.,left( {frac{{27}}{2} imes frac{{1000}}{{100}}}
ight) cr
& = Rs.,135. cr
& { ext{Interest}},{ ext{Obtained}} cr
& = left( {frac{{135}}{{900}} imes 100}
ight)\% cr
& = 15\% cr} $$

[#3] Which is better investment: 11% stock at 143 xa0orxa0 $$9frac{3}{4}$$% stock at 117?
Correct Answer

(B) $$9frac{3}{4}$$% stock at 117

Explanation

Solution: $$eqalign{
& { ext{Let}},{ ext{investment}},{ ext{in}},{ ext{each}},{ ext{case}},{ ext{be}} cr
& Rs.,left( {143 imes 117}
ight) cr
& { ext{Income}},{ ext{in}},{{ ext{1}}^{{ ext{st}}}},{ ext{case}} cr
& = Rs.left( {frac{{11}}{{143}} imes 143 imes 117}
ight) cr
& = Rs.,1287 cr
& { ext{Income}},{ ext{in}},{{ ext{2}}^{{ ext{nd}}}},{ ext{case}} cr
& = Rs.,left( {frac{{39}}{{4 imes 117}} imes 143 imes 117}
ight) cr
& = Rs.,1394.25 cr
& { ext{Clearly,}},9frac{3}{4}\% ,{ ext{stock}},{ ext{at}},117,{ ext{is}},{ ext{better}} cr} $$

[#4] A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:
Correct Answer

(B) Rs. 15

Explanation

Solution: $$eqalign{
& { ext{Dividend}},{ ext{on}},Rs.,20 cr
& = Rs.,left( {frac{9}{{100}} imes 20}
ight) cr
& = Rs.,frac{9}{5} cr
& Rs.,12,{ ext{is}},{ ext{an}},{ ext{income}},{ ext{on}},Rs.,100. cr
& herefore Rs.,frac{9}{5},{ ext{is}},{ ext{an}},{ ext{income}},{ ext{on}} cr
& = Rs.,left( {frac{{100}}{{12}} imes frac{9}{5}}
ight) cr
& = Rs.,15 cr} $$

[#5] By investing in $$16frac{2}{3}$$% stock at 64, one earns Rs. 1500. The investment made is:
Correct Answer

(B) Rs. 5760

Explanation

Solution: To earn Rs. $$frac{{50}}{3},$$ investment = Rs. 64 To earn Rs. 1500, investment = $$eqalign{
& Rs.,left( {64 imes frac{3}{{50}} imes 1500}
ight) cr
& = Rs.,5760 cr} $$