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Question 154

A person has deposited Rs. 13,200 in a bank which pays 14% interest. He withdraws the money and invests in Rs. 100 stock at Rs. 110 which pays a dividend of 15%. How much does he gain or lose?

Solution

Principal sum = Rs. 13,200 and rate of interest = 14%

=> Interest earned = $$\frac{14}{100}\times13200=Rs.$$ $$1848$$

Thus, number of shares purchased = $$\frac{13200}{110}=120$$

=> Income from stock = (15% of Rs. 100) x 120

= $$15\times120=Rs.$$ $$1800$$

$$\therefore$$ Loss = $$1848-1800=Rs.$$ $$48$$

=> Ans - (A)

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