Question

Which is the better investment:

First : 16% Rs.100 shares at 80 or

Second : 20% Rs.100 shares at 120?

• A. First
• B. Second
• C. A and B
• D. None of these

Answer 1

Answer: (A)

First

in first case

$\Rightarrow P\%onRs.80=16\%onRs.100$

$\Rightarrow \frac{P}{100}\times 80=\frac{16}{100}\times 100$

$\Rightarrow \frac{8P}{10}=16$

$\Rightarrow P=20$%

Second case

$\Rightarrow P\%ofRs.120=20\%of100$

$\Rightarrow \frac{12P}{10}=20$

$\Rightarrow P=16.6$%

$\therefore$First investment is better.