Question
Which is better investment: 11% stock at 143 or 9\(\frac{3}{4}\)% stock at 117?
Answer: Option B
Was this answer helpful ?
Let investment in each case be Rs. (143 x 117).
Income in 1st case = Rs. \(\left(\frac{11}{143}\times143\times117\right) = Rs.1287.\)
Income in 2nd case = Rs. \(\left(\frac{39}{4\times117}\times143\times117\right) = Rs. 1394.25\)
Clearly, \(9\frac{3}{4}\) % stock at 117 is better
Was this answer helpful ?
Submit Solution