A man invested equal sums in 5% stock at 96 and 6% stock at par. If he had invested the whole amt. in 6 3/4%stock at 108, he would have received Rs.41 2/3 more income per year.invested amt.=?

Question

Ans. is 6451 57/93. This is from the chapter stock and share.

Answer 1

If x is the total number of shares and each share has a face value of R100, then the true value of the 96 share will be R96 and the share at par will be R100. So x/2 of the 96 shares will fetch 5% in income=0.05x/2 * 96=2.4x.

And x/2 of the par shares will fetch 0.06x/2 * 100=3x.

The total income is therefore 5.4x.

Now, x shares at R108 per share at 6.75% fetch 0.0675 * 108=7.29x.

The difference is (7.29-5.4)x=1.89x=R41.67. So x=22.05 (12500/567) and the investment is R2205 (1250000/567=R2204 332/567).

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