Question

A $12\%$ stock yielding $10\%$ is quoted at:

• A. Rs. 120
• B. Rs. 110
• C. Rs. 112
• D. Rs. 83.33

Answer 1

The correct option is A

Rs. 120

To earn $Rs.10$, money invested = $Rs.100$

To earn $Rs.12$, money invested $=Rs.(\frac{100}{10}\times 12)=Rs.120.$

Therefore, market value of Rs.100 stock = Rs. $120.$