Question

Ramesh holds Rs 2,100 of 3% stock. He sells at Rs. 121 and invests the proceeds in 5% stock. Thereby his income increases by 14. Find the market price of 5% stock.

Answer 1

Stock 100 – amount 121 

Stock 2100 – ? 

Amount = \(\frac{2,100\times121}{100}\) = 2,541 

Income = \(\frac{D}{A}\) × 100 

77 = \(\frac{8}{A}\) x 2,541 

Amount = \(\frac{5\times2,541}{77}\) = Rs 165 

Market price of 5% 

stock = Rs 165