How much must be invested in 14.25% stock at 98 to produce the same in

1.	How much must be invested in 14.25% stock at 98 to produce the same income as would be obtained by investing Rs 9,975 in 15% stock at 105.
Answer» Let the cash invested be x Income from 14.25% stock at 98 = \(\frac{14.25}{98}\) x Income from 15% stock at 105 by investing Rs 9,975 = \(\frac{15}{105}\) × 9,975 Given both the incomes are equal ⇒ x = 9,800 ∴ Amount to be invested = Rs 9800

How much must be invested in 14.25% stock at 98 to produce the same income as would be obtained by investing Rs 9,975 in 15% stock at 105.

Answer»

Let the cash invested be x

Income from 14.25% stock at 98 = \(\frac{14.25}{98}\) x

Income from 15% stock at 105 by investing Rs 9,975 = \(\frac{15}{105}\) × 9,975

Given both the incomes are equal ⇒ x = 9,800

∴ Amount to be invested = Rs 9800