Which is a better investment, 4% stock at Rs. 120 or 3 % at Rs. 80?

First

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Second

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Data insufficient

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None of these

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Solution

The correct option is D Second
Income from first stock on $R s .120$ = $R s . 4$
Income from second stock on $R s . 80$ = $R s . 3$
$∴$ Income from second stock on $R s . 120$ $= \frac{3 \times 120}{80} = R s .4 .50$
Hence second investment is better.

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