Question

Arrange the investments in ascending order of their profits (F.V. is 100)

• A. 5% at 50
• B. 8% at 120
• C. 9% at 126
• D. 10% at 160

Answer 1

Given, Face Value (F.V) for all the shares is 100.
$\because$ Profit % on M.V = Dividend % on F.V

In 5% at 50, Market value (M.V) = 50
Dividend % = 5 %
$\Rightarrow$ Profit % x 50 = 5% x 100
$\Rightarrow$ Profit % = 10%

In 8% at 120, Market value (M.V) = 120
Dividend % = 8 %
$\Rightarrow$ Profit % x 120 = 8% x 100
$\Rightarrow$ Profit % = $\frac{100}{15}$ %
= 6.66%

In 9% at 126, Market value (M.V) = 126
Dividend % = 9 %
$\Rightarrow$ Profit % x 126 = 9% x 100
$\Rightarrow$ Profit % = $\frac{100}{14}$ %
= 7.14 %

In 10% at 160, Market value (M.V) = 160
Dividend % = 10 %
$\Rightarrow$ Profit % x 160 = 10% x 100
$\Rightarrow$ Profit % = $\frac{100}{16}$ %
= 6.25 %

So the order is 10% at 160, 8% at 120, 9% at 126, 5% at 50.