1.
In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:
A. Rs. 3100 B. Rs. 6240
C. Rs. 6500 D. Rs. 9600
Answer & Explanation
Answer: Option B
Explanation:
To obtain Rs. 10, investment = Rs. 96.
To obtain Rs. 650, investment = Rs. 96 x 650 = Rs. 6240.
10
2.
A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13. The rate of interest obtained is:
A.
12 1 %
2
B.
13 1 %
2
C. 15% D.
16 2 %
3
Answer & Explanation
Answer: Option C
Explanation:
Investment = Rs. [20 x (50 – 5)] = Rs. 900.
Face value = Rs. (50 x 20) = Rs. 1000.
Dividend = Rs. 27 x 1000 = Rs. 135.
2 100
Interest obtained = 135 x 100 % = 15%
900
3.
Which is better investment: 11% stock at 143 or 9% stock at 117?
A. 11% stock at 143
B.
9 3 % stock at 117
4
C. Both are equally good
D. Cannot be compared, as the total amount of investment is not given.
Answer & Explanation
Answer: Option B
Explanation:
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
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:
A. Rs. 12 B. Rs. 15
C. Rs. 18 D. Rs. 21
Answer & Explanation
Answer: Option B
Explanation:
Dividend on Rs. 20 = Rs. 9 x 20 = Rs. 9 .
100 5
Rs. 12 is an income on Rs. 100.
Rs. 9 is an income on Rs. 100 x 9 = Rs. 15.
5 12 5
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5.
By investing in 16% stock at 64, one earns Rs. 1500. The investment made is:
A. Rs. 5640 B. Rs. 5760
C. Rs. 7500 D. Rs. 9600
Answer & Explanation
Answer: Option B
Explanation:
To earn Rs. 50 , investment = Rs. 64.
3
To earn Rs. 1500, investment = Rs. 64 x 3 x 1500 = Rs. 5760.
50