Which is better investment: 11% stock at 143  or  9% stock at 117?

Question:
Which is better investment: 11% stock at 143  or  9% stock at 117?

[A].

11% stock at 143

[B].

9 3 % stock at 117
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[C].

Both are equally good

[D].

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

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.
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A man invests some money partly in 9% stock at 96 and partly in 12% stock at 120. To obtain equal dividends from both, he must invest the money in the ratio:

Question:
A man invests some money partly in 9% stock at 96 and partly in 12% stock at 120. To obtain equal dividends from both, he must invest the money in the ratio:

[A].

3 : 4

[B].

3 : 5

[C].

4 : 5

[D].

16 : 15

Answer: Option D

Explanation:

For an income of Re. 1 in 9% stock at 96, investment = Rs. 96 = Rs. 32
9 3
For an income Re. 1 in 12% stock at 120, investment = Rs. 120 = Rs. 10.
12
Ratio of investments = 32 : 10 = 32 : 30 = 16 : 15.
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