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