Question

The market value of a $10.5\%$ stock, in which an income of Rs. 756 is derived by investing Rs. 9000, brokerage being $1/4\%$ is:

• A. Rs. 124.50
• B. Rs. 124.25
• C. Rs. 125.75
• D. Rs. 124.75

Answer 1

The correct option is D

Rs. 124.75

For an income of Rs. 756, investment = Rs. 9000.

For an income of $Rs.\frac{21}{2}$,

Investment=Rs.$(\frac{9000}{756}\times \frac{21}{2})$

=Rs 125

$\therefore$ For a Rs. 100 stock, investment = Rs. 125.

Market value of Rs. 100 stock $=Rs.(125-\frac{1}{4})=Rs.124.75$