Which is better investment: 11% stock at 143 or 9 \(\frac{3}{4}\) % stock at 117? Options: A . &nbsp11% stock at 143 B . &nbsp \(9\frac{3}{4}\) % stock at 117 C . &nbspBoth are equally good D . &nbspCannot be compared, as the total amount of investment is not given.

Which is better investment: 11% stock at 143 or 9\(\frac{3}{4}\)% st

Question

Which is better investment: 11% stock at 143 or 9\(\frac{3}{4}\)% stock at 117?

Options:

A . 11% stock at 143

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

C . Both are equally good

D . Cannot be compared, as the total amount of investment is not given.

Answer: Option B

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

Income in 1^st case = Rs. \(\left(\frac{11}{143}\times143\times117\right) = Rs.1287.\)

Income in 2^nd case = Rs. \(\left(\frac{39}{4\times117}\times143\times117\right) = Rs. 1394.25\)

Clearly, \(9\frac{3}{4}\) % stock at 117 is better

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