Question

(a) A person invests Rs 15000 partly in 3% stock at 75 and partly in 6% stock at 125. If the income from both is Rs 675 find his investment in the 2 types of stock. 

(b) At what price a person has bought 25% shares with face value 100 which has give him 20% returns.

Answer 1

(a) Let x be invested in I stock & (15,000 – x) will be invested in II stock. 

I₁ = Income obtained from 1^st stock is \(\frac{3x}{75}\)

I₂ = Income obtained from 2nd stock = \(\frac{6}{125}\)(15,000-x) 

Given Total income = I₁ + I₂ = 675 

\(\frac{3x}{75}\) + \(\frac{6}{125}\)(15,000 - x) = 675 

0.008 x = 45 ⇒ x= 5,625 

∴ Amount invested in 1^st stock is Rs 5,625 and in 2nd stock is Rs 9,375 

(b) Yield = 20%, dividend = 25% 

Yield = \(\frac{D}{A}\)= x 100 

20 = \(\frac{25}{A}\) × 100 

Α = \(\frac{25\times100}{20} = 125\)