1.

Which is better investment? 7% of Rs 100 shares at Rs 120 (or) 8% of Rs 100 shares at Rs 135.

Answer»

Let the investment in each case be Rs (120 x 135) 

Case (i): Income from 7% of Rs 100 shares at Rs 120 

= \(\frac{7}{120}\) x 120 x 135 

= 7 x 135 

= Rs 945

Case (ii): Income from 8% of Rs 100 shares at Rs 135

= \(\frac{8}{135}\) x (120 x 135) 

= 8 x 120 

= Rs 960 

∴ 8% of 100 shares at Rs 135 is better investment.



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