CRE 5 - Stocks and Bonds | Arithmetic - Simple & Compound Interest
How much stock can be purchased for Rs. 6900 at 92?
- A.
Rs. 7200
- B.
Rs. 7500
- C.
Rs. 7250
- D.
Rs. 7400
Answer: Option B
Explanation :
Stock purchased =Rs. = Rs. 7500
Hence, option (b).
Workspace:
How much stock can be bought for Rs. 8400 at 105?
- A.
Rs. 8000
- B.
Rs. 8050
- C.
Rs. 8250
- D.
Rs. 8450
Answer: Option A
Explanation :
Stock bought = Rs. = Rs. 8000
Hence, option (a).
Workspace:
How much % stock at 5 below par can be purchased by investing Rs. 4750?
- A.
Rs. 4900
- B.
Rs. 4950
- C.
Rs. 5000
- D.
Rs. 5200
Answer: Option C
Explanation :
Stock purchased = Rs. = Rs. 5000
Hence, option (c).
Workspace:
How much of 3% stock at 110 should be bought to get an annual income of Rs. 210?
- A.
RS. 7500
- B.
Rs. 7250
- C.
Rs. 7000
- D.
Rs. 7850
Answer: Option C
Explanation :
3% of stock = 210
∴ Stock ==7000
Hence, option (c).
Workspace:
How much money must be invested to purchase Rs. 3300 for stock ("brokerage" =)
- A.
Rs. 3000
- B.
Rs. 2870
- C.
Rs. 2970
- D.
Rs. 2907
Answer: Option C
Explanation :
Net value of a Stock Rs. 100 = Rs. on Rs. 90
∴ Stock of Rs. 3300 stock can be purchased by investing Rs.
Hence, option (c).
Workspace:
What sum of money must be invested in 5% stock at 105 to obtain an annual income of Rs. 230?
- A.
Rs. 4830
- B.
Rs. 4800
- C.
Rs. 4820
- D.
Rs. 4730
Answer: Option A
Explanation :
To obtain Rs. 5 income investment = Rs. 105
∴ to obtain Rs. 230 as income, investment =
Hence, option (a).
Workspace:
What sum of money must a man invest in 6% stock at 105 to get a net income of Rs. 255 after deduction of income tax at the rate of 15%.
- A.
Rs. 5200
- B.
Rs. 5250
- C.
Rs. 5280
- D.
Rs. 5295
Answer: Option B
Explanation :
Money received by investing Rs. 105 = 85% of Rs. 6 = Rs. 5.10
∴ Sum invested =
Hence, option (b).
Workspace:
A man bought Rs. 3750 stock at par and sold it out when it was quoted at Rs. 105. What was his gain or loss?
- A.
Rs. 187.50 P
- B.
Rs. 178.50 P
- C.
Rs. 177.50 P
- D.
Rs. 167.50 P
Answer: Option A
Explanation :
Net gain = 5% of Rs. 3750 = 187.50
Hence, option (a).
Workspace:
A man invested Rs.in Government paper at and sold it at . Find his loss, if the brokerage is 1/8 (both ways)
- A.
Rs. 180
- B.
Rs. 200
- C.
Rs. 210
- D.
Rs. 317.50
Answer: Option B
Explanation :
Money invested in Rs. 100 stock =
Money received =
Loss on Rs.
∴ Loss on Rs. 6870 =
Hence, option (b).
Workspace:
A man holding Rs. 3000 of stock sells it at and invests the proceeds in 5% stock at Find the change in his income ("brokerage" =)
- A.
Rs. 19 increase
- B.
Rs. 21 decrease
- C.
Rs. 18 increase
- D.
Rs. 21 increase
Answer: Option D
Explanation :
Income from first stock =of 3000 = Rs. 105
∴ total sale proceeds from first stock = of Rs. 100
∴ Total sale proceeds
New purchase price of Rs. 100 stock = Rs.
Income from 2nd stock =
∴ Income increase = 126 – 105 = 21
Hence, option (d).
Workspace:
By investing Rs. 8000 partly in 8% stock at 80 and partly in 10% stock at 110, I get an annual income of Rs. 750. How much do I invest in 10% stock.
- A.
Rs. 5500
- B.
Rs. 4500
- C.
Rs. 3500
- D.
Rs. 2500
Answer: Option A
Explanation :
Income on Rs. 1 from 1st Stock = Rs. = Rs.
Income on Rs. 1 from 2nd Stock = Rs. = Rs.
Mean income on Rs. 1 = Rs. = Rs.
By Method of Alligation
Ratio in which the money is invested = 5 : 11
∴ Money invested in 10% stock = × 8000 = 5500
Hence, option (a).
Workspace:
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