Question

A person owns 150 shares (face value Rs.25) of a company which declares a dividend of 12%. He sells the share at Rs. 40 and invests the proceeds in 7% stock (par value Rs.100) at Rs.80. What is the change in his income?

• A. Rs.50 less
• B. Rs.70 more
• C. Rs.60 less
• D. Rs.75 more
• E. Cannot be determined

Answer 1

Answer: (C)

Rs.60 less

Answer 2

The correct option is (C): Rs.60 less.