Aptitude - Stocks and Shares - Discussion

Discussion Forum : Stocks and Shares - General Questions (Q.No. 5)
5.
By investing in 16% stock at 64, one earns Rs. 1500. The investment made is:
Rs. 5640
Rs. 5760
Rs. 7500
Rs. 9600
Answer: Option
Explanation:

To earn Rs. 50 , investment = Rs. 64.
3

To earn Rs. 1500, investment = Rs. 64 x 3 x 1500 = Rs. 5760.
50

Discussion:
48 comments Page 5 of 5.

Vasavi said:   1 decade ago
Don't understand the meaning of "By investing in 16% stock at 64, ". Please explain?

Nilofar said:   1 decade ago
To earn 50/3 v invest 64.

So to earn 1500 v invest ?

Just do cross multiply i.e.,

V invest 64*1500*3/50 = Rs. 5760.

Lucky said:   1 decade ago
Here if you invest 64 Rs then you'll get 16 2/3%.

16 2/3% = 50/3 = 16.6Rs.
Which means you'll earn 16.6Rs.

In the question, one earns 1500 Rs then how much we invested?

64 ---- 16.6 or 50/3.
? ----- 1500.

= (1500*64)/(50/3).
= 1500*64*3/50.
= 5760.

Ankur said:   1 decade ago
Statements are very confusing! Basics are not clear! Help.

Raju said:   1 decade ago
Income 1500 means dividend on total face value of stocks.

Dividend always earned on total face value of shares as per market value.

d = g/mv*fv.

16of2/3% means we gain(g) 50/3 at 100.

1500 = 50/3/64*fv.
fv = 1500*3/50*64.
fv = 5760.

Total fv is investment to price shares.

Raju@cat trainer said:   1 decade ago
16% stock at 64.

Means x% dividend on market value.

So 16% means 16 rupees for 100th of share.

Dividend = Annual profit of shares or x% stock of total face values.

Eg:

A person purchased 7200, 8% stock at 90. What is the face value, market value, dividend?

Sol: A person purchased 7200 worth of stock at 8 % dividend.

So 8% dividend means 8 rupees.

Face value of shares=total value of shares.

Fv = 7200.

Total market value = 90% of total face value.

90/100*7200 = 6480.

Dividend on all shares 8% on 7200.

8/100*7200 = 576.

Varun said:   10 years ago
He earn 50/3-------------Invest 64.

For earn 1---------------64/(50/3).

1500 earn---------------1500*64*3/50 = 5760 Ans.

WAR said:   10 years ago
When left fraction goes to right it reciprocate.

x/y = something.

Then 1 = something*y/x.

Just couldn't understand the question? Please explain.


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