A man bought 20 shares of Rs. 50 at 5 discount, th | Stocks and Shares Questions & Answers

Q:

Which is better investment : 11% stock at 143 (or) 9 3/4% stock at 117 ?

A) Both are equally good	B) 9 3/4% stock at 117
C) Cannot be compared, as the total amount of investment is not given	D) 11% stock at 143

Answer & Explanation Answer: B) 9 3/4% stock at 117

Explanation:

Let investment in each case be Rs. (143 x 117).

Income in 1st case = Rs. $\frac{11}{143}$ x 143 x 117 = Rs. 1287.
Income in 2nd case = Rs. $\frac{39}{4 \times 117}$ x 143 x 117= Rs. 1394.25

Clearly, 9 3/4% stock at 117 is better.

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11 7957

Q:

By investing Rs. 1620 in 8% stock, Michael earns Rs. 135. The stock is then quoted at ?

A) Rs. 145	B) Rs. 245.1
C) Rs. 96	D) Rs. 75

Answer & Explanation Answer: C) Rs. 96

Explanation:

Michel earns Rs. 135 by investing Rs. 1620
To earn Rs. 8 how much he have to invest...?

= (8 x 1620)/135 = Rs. 96

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Q:

Mr. Shankar spends 25% of his monthly salary on household expenditure, 20% of the remaining on children’s education, and the remaining is equally invested in three different schemes. If the amount invested in each scheme is Rs.5600, what is the monthly salary of Shankar ?

A) Rs. 34000	B) Rs. 31245
C) Rs. 24315	D) Rs. 28000

Answer & Explanation Answer: D) Rs. 28000

Explanation:

Let the monthly salary of Shankar be = Rs.x
Amount invested on expenditure = 25% = x/4;
Remaning amount = 3x/4;
Amount invested on children education = 20% i.e = 3x/20;
Remaining amount = 3x/4 - 3x/20 = 3x/5;
Remaining amount invested in three different schemes i.e is 1/3(3x/5)
=> x/5 = 5600
Therefore x = 28000
Hence, Monthly salary of Shankar is Rs. 28,000.

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6 4560

Q:

The cash realised on selling a 14% stock is Rs.106.25, brokerage being 1/4% is

A) 123	B) 106
C) 100	D) 156

Answer & Explanation Answer: B) 106

Explanation:

Cash realised= Rs. (106.25 - 0.25)
= Rs. 106.

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9 6746

Q:

A man sells Rs.5000, 12 % stock at 156 and uinvests the proceeds parity in 8 % stock at 90 and 9 % stock at 108. He hereby increases his income by Rs. 70. How much of the proceeds were invested in each stock?

A) 4000	B) 4200
C) 4002	D) 4020

Answer & Explanation Answer: B) 4200

Explanation:

S.P of Rs. 5000 stock = $R s . (\frac{156}{100} * 5000)$ = Rs. 7800.

Income from this stock = $R s . (\frac{12}{100} * 5000)$ = Rs. 600.

Let investment in 8 % stock be x and that in 9 % stock = (7800 - x).

Therefore,

$(x * \frac{8}{90}) + (7800 - x) * \frac{9}{108} = [600 + 70]$

$\frac{4 x}{45} + \frac{7800 - x}{12} = 670 \Leftrightarrow x = 3600$

Therefore, Money invested in 8 % stock at 90 = Rs. 3600.

Money invested in 9 % at 108 = Rs. (7800-3600) = Rs. 4200.

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Q:

A man buys Rs. 25 shares in company which pays 9 % dividend. The money invested is such that it gives 10 % on investment. At what price did he buy the shares?

A) 22.50	B) 22
C) 20.45	D) 12.50

Answer & Explanation Answer: A) 22.50

Explanation:

Suppose he buys each share for Rs. x.

Then, $R s . (25 * \frac{9}{100}) = (x * \frac{10}{10})$ or x = Rs. 22.50.

Cost of each share = Rs. 22.50.

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Q:

Find the cost of 96 shares of Rs. 10 each at $\frac{3}{4}$ discount, brokerage being 1/4 per share.

A) 912	B) 921
C) 920	D) 900

Answer & Explanation Answer: A) 912

Explanation:

Cost of 1 share = $R s . [(10 - \frac{3}{4}) + \frac{1}{4}] = R s \frac{19}{2}$

Cost of 96 shares = $R s . (\frac{19}{2} * 96)$ = Rs. 912.

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Q:

Find the annual income derived by investing Rs. 6800 in 10% stock at 136.?

A) 250	B) 1500
C) 500	D) 50

Answer & Explanation Answer: C) 500

Explanation:

By investing Rs. 136, income obtained = Rs. 10.

By investing Rs. 6800, income obtained = $R s . \frac{10}{36} \times 6800$ = Rs. 500.

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A) 13%	B) 12
C) 15%	D) 16%

A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13 $\frac{1}{2}$ . The rate of interest obtained is:

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A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13 12 . The rate of interest obtained is:

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A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13 $\frac{1}{2}$ . The rate of interest obtained is: