Ex. 4. Find the annual income derived from Rs. 2500, 8% stock at 106.

Sol. Income from Rs. 100 stock = Rs. 8. Income from Rs. 2500 = Rs. [(8/1000*2500) =Rs. 200.

Ex. 5. Find the annual income derived by investing Rs. 6800 in 10% stock at 136.

Sol. By investing Rs. 136, income obtained = Rs. 10. By investing Rs. 6800, income obtained = Rs. [(10/136)*6800] = Rs. 500.

Ex. 6. Which is better investment? 7(1/2) % stock at 105 or 6(1/2) % at 94.

Sol. Let the investment in each case be Rs. (105*94).

Case I : 7(1/2) 5 stock at 105: On investing Rs. 105, income = Rs. (15/2). On investing Rs. (105*94), income = Rs. [(15/2)*(1/105)*105*94] = Rs 705.

Case II : 6(1/2) % stock at 94: On investing Rs. 94, income = Rs. (13/2). On investing Rs. (105*94), income = Rs. [(13/2)*(1/94)*105*94] = Rs. 682.5. Clearly, the income from 7(1/2) % stock at 105 is more. Hence, the investment in 7(1/2) % stock at 105 is better.

Ex. 7. Find the cost of 96 shares of Rs. 10 each at (3/4) discount, brokerage being (1/4) per share.

Ex. 8. Find the income derived from 88 shares of Rs. 25 each at 5 premium, brokerage being (1/4) per share and the rate of dividend being 7(1/2) % per annum. Also, find the rate of interest on the investment.

Sol. Cost of 1 share = Rs. [25+5+1/4)] = Rs. (121/4). Cost of 88 shares = Rs.[(121/4)*88] = Rs. 2662. ∴ Investment made = Rs. 2662. Face value of 88 shares = Rs. (88*25) = Rs. 2200. Dividend on Rs. 100 = (15/2). Dividend on Rs. 2200 = Rs. [(15/20*(1/100)*2200] = Rs. 165. ∴ Income derived = Rs. 165. Rate of interest on investment = [(165/2662)*100] = 6.2 %.

Ex. 9. A man buys Rs. 25 shares in company which pays 9 % dividend. The money invested is such that it gives 10 % on investment. At what price did he buy the shares?

Sol. Suppose he buys each share for Rs. x. Then, [25*(9/100)] = [x*(10/100)] or x = Rs. 22.50. Cost of each share = Rs. 22.50.

Ex. 10. A man sells Rs.5000, 12 % stock at 156 and uinvests the proceeds parity in 8 % stock at 90 and 9 % stock at 108. He hereby increases his income by Rs. 70. How much of the proceeds were invested in each stock?

Sol. S.P of Rs. 5000 stock = Rs. [(156/100)*5000] = Rs. 7800. Income from this stock = Rs. [(12/100)*5000] = Rs. 600. Let investment in * % stock be x and that in 9 % stock = (7800-x). ∴ [x*(8/90)] + (7800-x) * (9/108) = (600+7) ⇔ (4x/45) + [(7800-x)/12] = 670 ⇔ 16x + 117000-15x = (670*180) ⇔ x = 3600. ∴ Money invested in 8 % stock at 90 = Rs. 3600. Money invested in 9 % at 108 = Rs. (7800-3600) = Rs. 4200.

Ad Blocker Detected

We have noticed that you have an ad blocker enabled which restricts ads served on the site.
Please disable it to continue using Downloadmela.

Ex. 1. Find the cost of:

Sol. (i) Cost of Rs. 100 stock = Rs. 90(i) Rs. 7200, 8% stock at 90;

(ii) Rs. 4500, 8.5% stock at 4 premium;

(iii) Rs. 6400, 10% stock at 15 discount.

Cost of Rs. 7200 stock = Rs. (90/100 * 7200 ) = Rs. 6480.

(ii) Cost of Rs. 100 stock = Rs. (100+4)

Cost of Rs. 4500 stock = Rs. (104/100 * 4500 ) = Rs. 4680

(iii) Cost of Rs. 100 stock = Rs. (100-15)

Cost of Rs. 6400 stock = Rs. (85/100 * 6400 ) = Rs. 5440.

Ex. 2. Find the cash required to purchase Rs. 3200, 7(1/2) % stock at 107 (brokerage (1/2) %)

Sol. Cash required to purchase Rs. 100 stock = Rs (107+(1/2)) = Rs. (215/2).Cash required to purchase Rs. 100 stock = Rs [(215/2)*(1/100)*3200] = Rs. 3440.

Ex. 3. Find the cash realised by selling Rs. 2440, 9.5% stock at 4 discount (brokerage (1/4) %)

Sol. By selling Rs. 100 stock , cash realised = Rs. [(100-4)-(1/4)] = Rs. (383/4).By selling Rs. 2400 stock, cash realised = Rs. [(383/4)*(1/100)*2400] = Rs 2298.

Ex. 4. Find the annual income derived from Rs. 2500, 8% stock at 106.

Sol. Income from Rs. 100 stock = Rs. 8.Income from Rs. 2500 = Rs. [(8/1000*2500) =Rs. 200.

Ex. 5. Find the annual income derived by investing Rs. 6800 in 10% stock at 136.

Sol. By investing Rs. 136, income obtained = Rs. 10.By investing Rs. 6800, income obtained = Rs. [(10/136)*6800] = Rs. 500.

Ex. 6. Which is better investment? 7(1/2) % stock at 105 or 6(1/2) % at 94.

Sol. Let the investment in each case be Rs. (105*94).Case I : 7(1/2) 5 stock at 105:

On investing Rs. 105, income = Rs. (15/2).

On investing Rs. (105*94), income = Rs. [(15/2)*(1/105)*105*94] = Rs 705.

Case II : 6(1/2) % stock at 94:

On investing Rs. 94, income = Rs. (13/2).

On investing Rs. (105*94), income = Rs. [(13/2)*(1/94)*105*94] = Rs. 682.5.

Clearly, the income from 7(1/2) % stock at 105 is more.

Hence, the investment in 7(1/2) % stock at 105 is better.

Ex. 7. Find the cost of 96 shares of Rs. 10 each at (3/4) discount, brokerage being (1/4) per share.

Sol. Cost of 1 share = Rs. [(10-(3/4)) + (1/4)] = Rs. (19/2).Cost of 96 shares = Rs. [(19/2)*96] = Rs. 912.

Ex. 8. Find the income derived from 88 shares of Rs. 25 each at 5 premium, brokerage being (1/4) per share and the rate of dividend being 7(1/2) % per annum. Also, find the rate of interest on the investment.

Sol. Cost of 1 share = Rs. [25+5+1/4)] = Rs. (121/4).Cost of 88 shares = Rs.[(121/4)*88] = Rs. 2662.

∴ Investment made = Rs. 2662.

Face value of 88 shares = Rs. (88*25) = Rs. 2200.

Dividend on Rs. 100 = (15/2).

Dividend on Rs. 2200 = Rs. [(15/20*(1/100)*2200] = Rs. 165.

∴ Income derived = Rs. 165.

Rate of interest on investment = [(165/2662)*100] = 6.2 %.

Ex. 9. A man buys Rs. 25 shares in company which pays 9 % dividend. The money invested is such that it gives 10 % on investment. At what price did he buy the shares?

Sol. Suppose he buys each share for Rs. x.Then, [25*(9/100)] = [x*(10/100)] or x = Rs. 22.50.

Cost of each share = Rs. 22.50.

Ex. 10. A man sells Rs.5000, 12 % stock at 156 and uinvests the proceeds parity in 8 % stock at 90 and 9 % stock at 108. He hereby increases his income by Rs. 70. How much of the proceeds were invested in each stock?

Sol. S.P of Rs. 5000 stock = Rs. [(156/100)*5000] = Rs. 7800.Income from this stock = Rs. [(12/100)*5000] = Rs. 600.

Let investment in * % stock be x and that in 9 % stock = (7800-x).

∴ [x*(8/90)] + (7800-x) * (9/108) = (600+7)

⇔ (4x/45) + [(7800-x)/12] = 670 ⇔ 16x + 117000-15x = (670*180) ⇔ x = 3600.

∴ Money invested in 8 % stock at 90 = Rs. 3600.

Money invested in 9 % at 108 = Rs. (7800-3600) = Rs. 4200.