Aptitude - Stocks and Shares - Discussion

Discussion Forum : Stocks and Shares - General Questions (Q.No. 10)
10.
By investing Rs. 1620 in 8% stock, Michael earns Rs. 135. The stock is then quoted at:
Rs. 80
Rs. 96
Rs. 106
Rs. 108
Answer: Option
Explanation:

To earn Rs. 135, investment = Rs. 1620.

To earn Rs. 8, investment = Rs. 1620 x 8 = Rs. 96.
135

Market value of Rs. 100 stock = Rs. 96.

Discussion:
5 comments Page 1 of 1.

Sergi said:   4 years ago
According to me, we can solve this by;

1st method- Formula oriented
consider face value of the stock be 100 and x be the market value (quoted value) of the stock when its sold.

{(8% of 100) / x } * 1620 = 135.
( 8 / x ) * 1620 = 135,
8/x=135/1620,
x=8/0.0833333,
x=96.

2nd method - logical.

" he bought the stock when it was 8% of face value and sold when it was some x % of market value(quoted value) which got him 135 earning "
from this, you can say.

*some % of investment is income*
(8% ÷ x %) of 1620 = 135.
(8/100 ÷ x/100 ) 1620 =135.
simplify, x = 96.

Sivaraman said:   6 years ago
Total number of mark 8/20.

MARK said:   7 years ago
Is it that we should assume the face value as 100Rs, when it is not mentioned in the question?

Ayush bansal said:   8 years ago
How can you assume the stock is 100 Rs?

Learner said:   1 decade ago
Number of shares bought = (1620/Market value).

Total dividend amount = (1620/Market value)*(8/100).

Income = Rs.135.

Total dividend amount = Income.

=> (1620/Market value)*(8/100) = 135.

=> Market value = Rs.0.96.
(1)

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