Question #10083

Mrs.S invests a part of Rs.144,000 in 12% stock having face value of Rs.100 at a price of Rs.120 and the remainder in 15% stock having face value of Rs.100 at a price of Rs.125. If his total dividend per annum is Rs.16,320 how much does she invest in 12% stock at Rs.120??

Expert's answer

Total dividend per annum: 16320 = (100 / 120) * x * 0.12 + (100 / 125)

*

(144000 - x) * 0.15. So,

16320 = x * 0.1 + 17280 - 0.12 * x

0.02 * x =

17280 - 16320

x = 960/ 0.02 = 48000 invested in 12% stock at Rs.120

*

(144000 - x) * 0.15. So,

16320 = x * 0.1 + 17280 - 0.12 * x

0.02 * x =

17280 - 16320

x = 960/ 0.02 = 48000 invested in 12% stock at Rs.120

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