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By investing Rs.1620 in 8% stock, Michael earns Rs.135. The stock is then quoted at
A. Rs. 80
B. Rs.96
C. Rs.106
D. RS.108

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Last updated date: 13th Jul 2024
Total views: 449.4k
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Answer
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Hint: This problem can be solved by using simple math applications of dividend rule. Whenever we have given investment in \[x\% \]stock, this states that the market value for Rs.100 is Rs. \[x\]
Given,
Investment by Michael in stock = Rs.1620
Then he earns in stock = Rs.135
All this investment is done in 8% stock. This means we have to find the investment by Michael to earn Rs.8. for the market value of Rs.100.
So, \[{\text{investment per Rs}}{\text{.100 = }}\dfrac{{{\text{investment in stock}}}}{{{\text{earned in stock}}}} \times {\text{ to earn in stock for Rs}}{\text{.100}}\]
i.e., \[{\text{investment = }}\dfrac{{1620}}{{135}} \times 8 = 96\]
Therefore, Market value of Rs.100 in stock = Rs.96
Thus, the correct answer is B. Rs.96
Note: This type of problem is coming under stock and shares – Aptitude questions. Most of the students get confused in percentage in stock. In this problem Michael has earned in stock. Some will ask to calculate the lost money or crossed money investment in stock. Then also we have to apply the same method.