Discussion of Question with ID = 005 under Stocks-and-Shares

This is the discussion forum for this question. If you find any mistakes in the solution, or if you have a better solution, then this is the right place to discuss. A healthy discussion helps all of us, so you are requested to be polite and soft, even if you disagree with the views of others. The question and its current solution has also been given on this page.

Question

Mrs. K invests a part of Rs. 39600 in 2% stock at Rs. 120, and the remainder in 5% stock at Rs. 110. If her dividend per annum is Rs. 1040, how much did she invest in 5% stock?

A

Rs. 13200.

B

Rs. 13300.

C

Rs. 13100.

D

Rs. 13400.

Soln.
Ans: a

If she invests x in 5% stock at Rs. 110, then her income from this investment is Rs. \$(x × 5)/110\$. Her income from the 2% stock at Rs. 120 would be \${(39600- x) × 2}/120\$. The sum is Rs. 1040. So \$(x × 5)/110\$ + \${(39600- x) × 2}/120\$ = 1040. Solving for x we get x = Rs. 13200. Please note that if the calculation seems tough in the exam, you can try direct substitution of options one by one.