1.

Rohit invested in two types of shares, P and Q, of a company. He purchased P at x% discount and Q at x% premium. If the total market value of each is equal, find the rate of effective discount (in per cent).

Answer»

`0.1%`
`(x^(2))/(400)%`
`(x^(2))/(200)%`
`(x^(2))/(100)%`

Solution :(i) `"Effective DISCOUNT"=("Total discount")/("Total MARKET value")XX100`
(ii) LET the market value of each share be m.
(iii) `FV_(1)=(100m)/(100+x)and FV_(2)=(100m)/(100-x)`
(iv) Find the total face value which is LESS than the total market value.
(v) Effective discount.
`=("(Total FV"-"Total MV)")/("Total FV")xx100`.


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