Aptitude - Stocks and Shares - Discussion

Discussion :: Stocks and Shares - General Questions (Q.No.13)

13. 

The market value of a 10.5% stock, in which an income of Rs. 756 is derived by investing Rs. 9000, brokerage being %, is:

[A]. Rs. 108.25
[B]. Rs. 112.20
[C]. Rs. 124.75
[D]. Rs. 125.25

Answer: Option C

Explanation:

For an income of Rs. 756, investment = Rs. 9000.

For an income of Rs. 21 , investment = Rs. 9000 x 21 = Rs. 125.
2 756 2

For a Rs. 100 stock, investment = Rs. 125.

Market value of Rs. 100 stock = Rs. 125 - 1 = Rs. 124.75
4


Preethi said: (Feb 1, 2011)  
How this 21/4 came?

Fyaz said: (Feb 12, 2011)  
Explain this question please.

Arjun said: (Mar 9, 2011)  
@Preethi

10.5=21/2 and not 21/4

Lighty said: (Jan 30, 2012)  
Kindly explain.

Shyam said: (Feb 4, 2012)  
I can not understand this question please explain it clearlly.

Prajyot said: (Jul 11, 2013)  
Let x be MV and fv be 100(say).

9000------>756.

100------->10.5*(100/(x+.25)).

Just solve them. You'll get x = 124.75.

Habte said: (Feb 3, 2014)  
How we get 100?

Jayant said: (Sep 9, 2014)  
For @Habte.
Simplifying @Prajyots answer.

Let 9000.......756
???........10.5

That gives 125.
Now subtracting brokerage 0.25(1/4) we get 124.75.

Ramya.T said: (Mar 29, 2015)  
How its 21\2?

Sukumar Satyen said: (Apr 27, 2015)  
Answer should be like this : -

Market Value of stock is to be found out, therefore, following are given: -

Face Value = Rs. 9000.

Dividend = 10.5%.

Annual Income = Rs. 756.

Brokerage per Rs. 100 = Rs. 0.25.

Dividend is always paid on the face value of a share.

By Formula,

Face Value * Dividend / (Market Value + Brokerage per Rs. 100) = Annual income.

=> 9000 * 10.5 / 756 = Market Value of Rs. 100 stock + Brokerage per Rs. 100.

=> Market Value of Rs. 100 stock + Brokerage per Rs. 100 = Rs. 125.

=> Market Value of Rs. 100 stock = Rs. 125 - Re. 0.25.

=> Market Value of Rs. 100 stock = Rs. 124.75.

Thanks.

Vishwaraj said: (Aug 11, 2015)  
In all other questions % stock is the profit per share i.e. 5% stock at 25 means 5 Rs. Profit on one share of Rs. 25.

So here 10.5 % should be the profit per share not the % profit per share.

Ashikur Rahman said: (Oct 26, 2016)  
How 21/2 came here?

Lica said: (Jun 24, 2017)  
Not able to understand, is there any shorcuts?

Neela said: (Jul 30, 2017)  
Can't understand it.

Ayesha said: (Oct 4, 2017)  
21/2 how?

Srabani said: (Oct 11, 2017)  
10.5stock can be written as;

=105/10,
=21/2(we are just converting point to fraction).

Shanu said: (Jan 13, 2019)  
Why Re 0.25 is subtracted from 125? Explain me.

Noorandeous said: (Oct 11, 2019)  
I don't know the formulas to be applied here. Kindly explain by mentioning the Formulas.

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