The market value of a 8.5% stock, in which an income of Rs. 2020 is derived by investing Rs. 20200,

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08 May 2020 Stocks

The market value of a 8.5% stock, in which an income of Rs. 2020 is derived by investing Rs. 20200, brokerage being 1/4 %, is:

OPtion

1) 84.75
2) 85.25
3) 84.25
4) 84.50
5) 85.75
6) 85.50
7) 83.75
8) 84.00
9) 83.00
10) None of these

Solution

For an income of Rs. 2020, investment = Rs. 20200

For an income of Rs. 8.5 investment = Rs. (2020/20200) * 8.5 = 85
For a Rs. 100 stock, investment = Rs. 85

Market value of Rs. 100 stock = Rs. 85 - 0.25 = Rs. 84.75

Correct Option: 1 Best Solution (2)