# Stock and Shares - Excercise 1

## Questions

Directions to solve

1.   The cash released on selling a 14% stock is Rs.106.25, brokerage being 1/4% is

• 123
• 106
• 100
• 156

Cash released= (106.25-0.25) = Rs 106

2.   A invested some money in 10% stock at 96. If B wants to invest in an equally good 12% stock, he must purchase a stock worth of :

• Rs.80
• Rs.115.20
• Rs.120
• Rs.125.40

For an income of Rs. 10, investment =Rs. 96.
For an income of Rs. 12, investment = Rs ${\left(\begin{array}{c}\frac{96}{10}\times12\end{array}\right)}$ = Rs 115.20

3.   Find the cost of Rs. 4500, 8.5% stock at 4 premium?

• 1400
• 5000
• 4000
• 4680

Cost of Rs. 100 stock = Rs.(100+4)=104
Cost of Rs. 4500 stock =Rs${\frac{104}{100}\times2500}$= Rs 4680

4.   Find the annual income derived from Rs. 2500, 8% stock at 106?

• 100
• 200
• 150
• 250

Income from Rs. 100 stock = Rs.8
Income from Rs. 2500 stock =${ \frac{8}{100}\times2500}$ =Rs 200

5.   Find the annual income derived by investing Rs. 6800 in 10% stock at 136.

• Rs.500
• Rs.100
• Rs.520
• Rs.340

By investing Rs.136, income obtained = Rs. 10
By investing Rs 6800, income obtained = ${ \frac{10}{36}\times}$6800 = Rs 500

6.   Find the cost of Rs. 6400, 10% stock at 15 discount?

• 2000
• 5440
• 6000
• 5140

Cost of Rs. 100 stock =(100-15)
Cost of Rs. 6400 stock =${ \frac{85}{100}\times6400}$ =Rs 5440

7.   A man buys Rs.50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investments, at what price did he buy the shares?

• Rs.37.50
• Rs.40
• Rs.48
• Rs.52
Dividend on 1 share Rs = ${\frac{10}{100}\times}$50 = Rs 5
Rs.5 is an income on an investments of Rs = ${\frac{100\times2}{25\times5}}$ = Rs. 40.