# Aptitude - Stocks and Shares - Discussion

Discussion Forum : Stocks and Shares - General Questions (Q.No. 9)
9.
A man invests some money partly in 9% stock at 96 and partly in 12% stock at 120. To obtain equal dividends from both, he must invest the money in the ratio:
3 : 4
3 : 5
4 : 5
16 : 15
Explanation:

 For an income of Re. 1 in 9% stock at 96, investment = Rs. 96 = Rs. 32 9 3

 For an income Re. 1 in 12% stock at 120, investment = Rs. 120 = Rs. 10. 12

 Ratio of investments = 32 : 10 = 32 : 30 = 16 : 15. 3

Discussion:
9 comments Page 1 of 1.

Joseph said:   4 years ago
X/y.
= 96*12 /9*120.
= 96/9*10.
= 96/90.
= 16/15.

Nai said:   5 years ago
@Sukumar Satyen.

Why 96/90? Explain.
(1)

Prathvi said:   5 years ago
@Sukumar Satyen.

From where 96/90 come?

Vijay Sisodiya said:   5 years ago
Thank you for explaining the solution.

Saba said:   8 years ago
Is annual income and rate of interest same? And investment is face value or market value?

Shrikanth said:   9 years ago
Very good explanation.

Sukumar Satyen said:   9 years ago
Let the Face Value of Stock giving dividend 9% be Rs. x, whose Market Value is Rs.96.

Let the Face Value of Stock giving dividend 12% be Rs. y, whose Market Value is Rs.120.

By given formula,

Face Value * Dividend % / Market Value = Annual income.

Annual Income from 1st Stock = 9x/96.

Annual Income from 2nd Stock = 12y/120.

To obtain equal dividends from both,

Annual Income from 1st Stock = Annual Income from 2nd Stock.

=> 9x/96 = 12y/120.

=> x/y = 96/90.

We find GCD of 96, 90 = 6.

=> x/y = 16*6 / 15*6.

=> Required ratio = x:y = 16:15.
(3)