Which is a better investment?

1.	Which is a better investment?
Answer» (a) 8% stock at 110 = \(\frac{8}{110}\) × 100 = 7.272% 9% stock at 98 = \(\frac{9}{98}\) × 100 = 9.18% 98 9.18% > 7.272 ∴ 9% stock at 98 is a better investment (b) 6 \(\frac{1}{2}\)% stock at 84 = \(\frac{\frac{13}{2}}{\frac{84}{84}}\)× 100 = 5.9% 4% stock at 102 = \(\frac{4}{102}\) × 100 = 3.92% ∴ 6 % stock at 84 is a better investment (C) 7% stock at 115 = \(\frac{7}{115}\) × 100 = 6.08% 5% stock at 88 = \(\frac{5}{88}\) × 100 = 5.68% Here 7% stock at 115 is better investment (d) 4% stock at 118 = \(\frac{4}{118}\)× 100 = 3.38% 6% stock at 124 = \(\frac{6}{124}\)× 100 = 6.83% ∴ 6% stock at 124 is better investment

Answer»

(a) 8% stock at 110 = \(\frac{8}{110}\) × 100 = 7.272%

9% stock at 98 = \(\frac{9}{98}\) × 100 = 9.18%

98 9.18% > 7.272

∴ 9% stock at 98 is a better investment

(b) 6 \(\frac{1}{2}\)% stock at 84 = \(\frac{\frac{13}{2}}{\frac{84}{84}}\)× 100 = 5.9%

4% stock at 102 = \(\frac{4}{102}\) × 100 = 3.92%

∴ 6 % stock at 84 is a better investment

5% stock at 88 = \(\frac{5}{88}\) × 100 = 5.68%

Here 7% stock at 115 is better investment

(d) 4% stock at 118 = \(\frac{4}{118}\)× 100

= 3.38%

6% stock at 124 = \(\frac{6}{124}\)× 100 = 6.83%

∴ 6% stock at 124 is better investment

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