Question

A person has deposited Rs. 13,200 in a bank which pays 14% inferest. 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?

• A. Loses Rs. 48
• B. Goins Rs. 48
• C. Loses Rs. 132
• D. Gains Rs. 132

Answer 1

Answer: (A)

Loses Rs. 48

Answer 2

Principal sum = Rs. 13,200 and rate of interest = 14%
$\rightarrow$Interest earned =$\frac{14}{100}\times13200=Rs.1848$
Thus, number of shares purchased=$\frac{13200}{110}=120$
$\rightarrow$Income from stock = (15% of Rs. 100) x 120
$\rightarrow 15×120=Rs.1800$
Therefore, Loss =$1848-1800=Rs.48$
The correct answer is (A) : Loses Rs. 48