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Rs. 9800 are invested partly in 9% stock at 75 and 10% stock at 80 to have equal amount of incomes. The investment in 9% stock is___________?

Correct answer: C. Rs. 5000

  • A. Rs. 4800
  • B. Rs. 5400
  • C. Rs. 5000
  • D. Rs. 5600

Explanation

The 9% stock at Rs. 75 yields 9/75 = 0.12 of the investment, while the 10% stock at Rs. 80 yields 10/80 = 0.125. Equal incomes require 0.12x = 0.125y, so x:y = 25:24; with x + y = Rs. 9800, x = Rs. 5000. The likely mistake is option b, Rs. 5400, from using the stock rates alone and ignoring their market prices.

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