For an income of Rs. 8, investment = Rs. 100.
For an income of Rs. 6,
investment =
$$\eqalign{
& Rs.\,\left( {\frac{{100}}{8} \times 6} \right) \cr
& = Rs.\,75 \cr} $$
∴ Market value of Rs. 100 stock = Rs. 75.
7.
A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 12%, his annual income is:
A man invests some money partly in 9% stock at 96 and partly in 12% stock at 120. To obtain equal dividends from both, he must invest the money in the ratio:
For an income of Rs. 1 in 9% stock at 96, investment =
$$Rs.\,\left( {\frac{{96}}{9}} \right) = Rs.\,\frac{{32}}{3}$$
For an income Rs. 1 in 12% stock at 120, investment =
$$Rs.\,\left( {\frac{{120}}{{12}}} \right) = Rs.\,10$$
∴ Ratio of investments
= $$\frac{{32}}{3}$$ : 10
= 32 : 30
= 16 : 15
10.
By investing Rs. 1620 in 8% stock, Michael earns Rs. 135. The stock is then quoted at: