A person has deposited Rs. 13200 in a bank which pays 14% interest. He withdraws the money and invests in Rs. 100 stock at Rs. 110 which pays a dividend of 15%. How much does he gain or lose ?

Solution (By Examveda Team)

Income from bank = 14% of Rs. 13200 = Rs. 1848
Number of shares purchased
= Rs. $$\left( {\frac{{13200}}{{110}}} \right)$$
= Rs. 120
Income from stock
= (15% of Rs. 100) × 120
= Rs. (15 × 120)
= Rs. 1800
∴ Loss = Rs. (1848 - 1800)
            = Rs. 48