Discussion of Question with ID = 066 under Stocks-and-Shares

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Question

Which stock investment option is better: 8% at Rs. 113 or 6% at Rs. 120?

A

8% is better.

B

6% is better.

C

Both are same.

D

Can't be decided.

Soln.
Ans: a

Let the amount invested be Rs. 113 × 120. Return on the first investment is $8/113$ × 113 × 120 = Rs. 960. Return on the second investment is $6/120$ × 113 × 120 = Rs. 678. So 8% is better.


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