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Which is better investment: 11% stock at 143 or $$9\frac{3}{4}$$% stock at 117?
Answer & Solution
Correct Answer:
Option
B
$$\eqalign{
& {\text{Let}}\,{\text{investment}}\,{\text{in}}\,{\text{each}}\,{\text{case}}\,{\text{be}} \cr
& Rs.\,\left( {143 \times 117} \right) \cr
& {\text{Income}}\,{\text{in}}\,{{\text{1}}^{{\text{st}}}}\,{\text{case}} \cr
& = Rs.\left( {\frac{{11}}{{143}} \times 143 \times 117} \right) \cr
& = Rs.\,1287 \cr
& {\text{Income}}\,{\text{in}}\,{{\text{2}}^{{\text{nd}}}}\,{\text{case}} \cr
& = Rs.\,\left( {\frac{{39}}{{4 \times 117}} \times 143 \times 117} \right) \cr
& = Rs.\,1394.25 \cr
& {\text{Clearly,}}\,9\frac{3}{4}\% \,{\text{stock}}\,{\text{at}}\,117\,{\text{is}}\,{\text{better}} \cr} $$
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