1.

Which is better investment:(10%,₹100 shares at ₹120) or (8%, ₹100 shares at ₹72)?​

Answer»

Answer:

Step-by-step explanation:

LET investment in each case be ₹(100 x 72)

CASE 1 -

By investing ₹100, annual INCOME = ₹10

By investing ₹(100 x 72), annual income = ₹(10/120) x (100 x 72) = ₹600

CASE 2 -

By investing ₹100, annual income = ₹8

By investing ₹(100 x 72), annual income = ₹(8/90) x (100 x 72) = ₹640

Therefore CASE 2 is a better investment.



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