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A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:
- a)31 : 44
- b)31 : 27
- c)16 : 15
- d)35 : 44
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
A man invests some money partly in 12% stock at 105 and partly in 8% s...
In case of stock1, if he invest Rs.105, he will get a dividend of Rs.12 (assume face value = 100)
In case of stock2, if he invest Rs.88, he will get a dividend of Rs.8 (assume face value = 100)
ie, if he invest Rs.(88*12)/8, he will get a dividend of Rs.12
Required ratio = 105 : (88 × 12)/8 = 105 : (11 × 12) = 35 : (11 × 4) = 35 : 44
In case of stock2, if he invest Rs.88, he will get a dividend of Rs.8 (assume face value = 100)
ie, if he invest Rs.(88*12)/8, he will get a dividend of Rs.12
Required ratio = 105 : (88 × 12)/8 = 105 : (11 × 12) = 35 : (11 × 4) = 35 : 44
Most Upvoted Answer
A man invests some money partly in 12% stock at 105 and partly in 8% s...
Investment in 12% stock at 105
Let's assume the man invests a certain amount of money in the 12% stock at 105. The dividend earned from this investment can be calculated as follows:
Dividend = (12/100) * Investment
Investment in 8% stock at 88
Similarly, the man also invests a certain amount of money in the 8% stock at 88. The dividend earned from this investment can be calculated as follows:
Dividend = (8/100) * Investment
Equal dividends from both stocks
The question states that the man wants to obtain equal dividends from both investments. Therefore, we can equate the two dividend equations:
(12/100) * Investment in 12% stock = (8/100) * Investment in 8% stock
Simplifying this equation, we get:
12 * Investment in 12% stock = 8 * Investment in 8% stock
Let's assume the investment in the 12% stock is x and the investment in the 8% stock is y. Therefore, we have the following equation:
12x = 8y
Solving for x, we get:
x = (8/12) * y
x = (2/3) * y
Ratio of investments
The question asks for the ratio of investments made in the two stocks. From the equation above, we know that x = (2/3) * y. Therefore, the ratio of investments can be written as:
x : y = (2/3) : 1
To make the ratio of the investments in the required format, we can multiply both sides of the equation by 3:
3x : 3y = 2 : 3
Now, we can rewrite the ratio in terms of the given options:
3x : 3y = 35 : 44 (since 35/44 is approximately equal to 2/3)
Therefore, the correct ratio of investments is 35 : 44, which corresponds to option D.
Let's assume the man invests a certain amount of money in the 12% stock at 105. The dividend earned from this investment can be calculated as follows:
Dividend = (12/100) * Investment
Investment in 8% stock at 88
Similarly, the man also invests a certain amount of money in the 8% stock at 88. The dividend earned from this investment can be calculated as follows:
Dividend = (8/100) * Investment
Equal dividends from both stocks
The question states that the man wants to obtain equal dividends from both investments. Therefore, we can equate the two dividend equations:
(12/100) * Investment in 12% stock = (8/100) * Investment in 8% stock
Simplifying this equation, we get:
12 * Investment in 12% stock = 8 * Investment in 8% stock
Let's assume the investment in the 12% stock is x and the investment in the 8% stock is y. Therefore, we have the following equation:
12x = 8y
Solving for x, we get:
x = (8/12) * y
x = (2/3) * y
Ratio of investments
The question asks for the ratio of investments made in the two stocks. From the equation above, we know that x = (2/3) * y. Therefore, the ratio of investments can be written as:
x : y = (2/3) : 1
To make the ratio of the investments in the required format, we can multiply both sides of the equation by 3:
3x : 3y = 2 : 3
Now, we can rewrite the ratio in terms of the given options:
3x : 3y = 35 : 44 (since 35/44 is approximately equal to 2/3)
Therefore, the correct ratio of investments is 35 : 44, which corresponds to option D.
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A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:a)31 : 44b)31 : 27c)16 : 15d)35 : 44Correct answer is option 'D'. Can you explain this answer?
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A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:a)31 : 44b)31 : 27c)16 : 15d)35 : 44Correct answer is option 'D'. Can you explain this answer? for LR 2025 is part of LR preparation. The Question and answers have been prepared according to the LR exam syllabus. Information about A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:a)31 : 44b)31 : 27c)16 : 15d)35 : 44Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for LR 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:a)31 : 44b)31 : 27c)16 : 15d)35 : 44Correct answer is option 'D'. Can you explain this answer?.
A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:a)31 : 44b)31 : 27c)16 : 15d)35 : 44Correct answer is option 'D'. Can you explain this answer? for LR 2025 is part of LR preparation. The Question and answers have been prepared according to the LR exam syllabus. Information about A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:a)31 : 44b)31 : 27c)16 : 15d)35 : 44Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for LR 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:a)31 : 44b)31 : 27c)16 : 15d)35 : 44Correct answer is option 'D'. Can you explain this answer?.
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A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:a)31 : 44b)31 : 27c)16 : 15d)35 : 44Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:a)31 : 44b)31 : 27c)16 : 15d)35 : 44Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:a)31 : 44b)31 : 27c)16 : 15d)35 : 44Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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