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Which is better investment: 11% stock at 143 or 9(3/4%) stock at 120?
- a)9(3/4%) stock at 117
- b)Cannot be compared, as the total amount of investment is not given.
- c)11% stock at 143
- d)Both are equally good
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Which is better investment: 11% stock at 143 or 9(3/4%) stock at 120?a...
Let investment in each case be Rs. (143 x 117).
Income in 1st case = Rs.11/143 x 143 x 117 = Rs. 1287.
Income in 2nd case = Rs.39/(4×117) x 143 x 117= Rs. 1394.25
Clearly, 9 3/4% stock at 117 is better.
Income in 1st case = Rs.11/143 x 143 x 117 = Rs. 1287.
Income in 2nd case = Rs.39/(4×117) x 143 x 117= Rs. 1394.25
Clearly, 9 3/4% stock at 117 is better.
Most Upvoted Answer
Which is better investment: 11% stock at 143 or 9(3/4%) stock at 120?a...
Solution:
Comparing two different stocks can be tricky sometimes. In this case, we have to compare two stocks with different rates and prices. Let's calculate the return on investment for both stocks.
Return on Investment:
Return on investment is the percentage of profit or loss on a particular investment. It can be calculated using the following formula:
Return on Investment = {(Income from Investment - Cost of Investment) / Cost of Investment} x 100
Calculation for 11% stock at 143:
Here, the stock rate is 143 and the return rate is 11%. So, let's calculate the return on investment.
Return on Investment = {(11/100) x 143} = 15.73%
Calculation for 9(3/4%) stock at 120:
Here, the stock rate is 120 and the return rate is 9(3/4)%. So, let's calculate the return on investment.
Return on Investment = {(9.75/100) x 120} = 11.70%
Conclusion:
From the above calculation, we can see that the return on investment for 9(3/4%) stock at 120 is less than 11% stock at 143. Hence, option 'A' is the correct answer.
Comparing two different stocks can be tricky sometimes. In this case, we have to compare two stocks with different rates and prices. Let's calculate the return on investment for both stocks.
Return on Investment:
Return on investment is the percentage of profit or loss on a particular investment. It can be calculated using the following formula:
Return on Investment = {(Income from Investment - Cost of Investment) / Cost of Investment} x 100
Calculation for 11% stock at 143:
Here, the stock rate is 143 and the return rate is 11%. So, let's calculate the return on investment.
Return on Investment = {(11/100) x 143} = 15.73%
Calculation for 9(3/4%) stock at 120:
Here, the stock rate is 120 and the return rate is 9(3/4)%. So, let's calculate the return on investment.
Return on Investment = {(9.75/100) x 120} = 11.70%
Conclusion:
From the above calculation, we can see that the return on investment for 9(3/4%) stock at 120 is less than 11% stock at 143. Hence, option 'A' is the correct answer.
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Which is better investment: 11% stock at 143 or 9(3/4%) stock at 120?a)9(3/4%) stock at 117b)Cannot be compared, as the total amount of investment is not given.c)11% stock at 143d)Both are equally goodCorrect answer is option 'A'. Can you explain this answer?
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