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Question

Please help me with this question:
Which is a better investment : a stock of 6% for rupees 108 or a stock of 4% at rupees 90.

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Solution

For a profit of 6 rupees he needs Rs. 108
Ie for 100 rupess he needs =(6/108)×100=5.55

Now in second case for a profit of 4 he needs 90 rupees.
So for 100 rupees he needs=(4/90)×100=4.44

So the first investment gives more percentage of profit.

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