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

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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.


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