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 1^{st} 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