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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