# 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:

Answer: Option

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.

= 96*12 /9*120.

= 96/9*10.

= 96/90.

= 16/15.

Nai said:
5 years ago

@Sukumar Satyen.

Why 96/90? Explain.

Why 96/90? Explain.

(1)

Prathvi said:
5 years ago

@Sukumar Satyen.

From where 96/90 come?

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.

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)

Saini said:
1 decade ago

9*x/96=12*y/120

x/y=16/15

(Note : X=total investment

Divide by 96 means total no of share)

x/y=16/15

(Note : X=total investment

Divide by 96 means total no of share)

Bindu said:
1 decade ago

Please help to understand any shortcuts.

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