Q.1. A man invests Rs. 8,100 partly in 14% stock at 294 and partly in 12% stock at 288. If his income from both is the same, find his investment in the 14% stock.
Sol : Option B
Let he invests x at 14% stock.
× Investment at 12% stock = 8100 – x.
As income is same.
x × (14/100) × (1/294) = (8100-x) × (12/100) × (1/288)
⇒ x = Rs.3780
Q.2. A man purchased 300 shares of the face value of Rs. 100 each from the market at Rs. 400 per share. If a dividend of 24% is declared, find his earning percent on the investment.
A. 2.4%
B. 3%
C. 6%
D. 8%
Sol : Option C
Price of 1 share = Rs. 400. Dividend rate = 24%. ∴ Earning % on investment = (24/400) ×100 = 6%.
Q.3. How many shares of market value Rs. 25 can be purchased for Rs. 25250?
A. 1,000
B. 1,200
C. None of these
D. 1,010
Sol : Option D
Number of shares that can be purchased = 25250/25
= 1,010.
Q.4. A man invested Rs. 6,600 when he bought Rs. 100 shares at Rs. 110. If 30% dividend is declared, find his annual income.
A. Rs. 1800
B. Rs. 1300
C. Rs. 1150
D. Rs.1 495
Sol : Option A
His annual income = (6600 × 30)/110=1800
Q.5. A 12% stock yields 16%. The market value of the stock of face value Rs. 100 is
A. 75
B. 133
C. 80
D. 120
Sol : Option A
Market value of the stock = (12/16) × 100 = 75
Q.6. To produce an annual income of Rs. 1200 in a 4 ½% stock at 94 ½, the amount of investment needed is
A. Rs. 25,200
B. Rs. 23,000
C. Rs. 22,000
D. Rs. 21,000
Sol : Option A
Stock required = 1200 × (94.5/4.5) =25200
Q.7. Which is better investment (I) 9% stock at 90 or (II) 8% stock at 88?
A. I
B. II
C. Data insufficient
D. None of these
Sol : Option A
If we want to earn an annual income of Rs. 1, we have to invest in
(I) Rs. 90/9 = 10 And in (II) Rs. 88/8 = Rs. 11
So 1st investment is better because we have to invest lesser amount to earn Re. 1.
Q8. If the annual income from 10% stock at 224 is Rs. 42 more than 8% stock at 196, then the investment is
A. Rs. 12,000
B. Rs. 11,000
C. Rs. 10,976
D. Rs. 11,048
Sol : Option C
Let the investment be Rs. x. ∴ (10x/224) - (8x/196) = 42 ⇒ x = Rs.10976
Q9. A company declares a dividend of 6%. Amira owns 1300 shares (par value Rs. 75). How much dividend does she receive?
A. Rs. 7800
B. Rs. 7200
C. Rs. 6000
D. None of these
Sol : Option A
Dividend she received = 1300 × 75 × (8/100) = Rs.7800
Q10. The capital of a company is Rs. 300,000 and is divided into 6,000 shares of common stock. If the company gives a dividend of Rs. 56,000, what amount will Dinesh receive for his 36 shares?
A. Rs. 400
B. Rs. 360
C. Rs. 336
D. None of these
Sol : Option C
Income for 3000 shares = Rs. 56,000. ∴ Income for 36 shares = (56000/6000)×36= Rs336