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A person deposited Rs. 13,200 in a bank, which pays 14% simple interest. If he rather had invested in Rs. 110 stocks which pay a dividend of 15% on the face value of Rs. 100, how much would he had lost or gained?

  • a)
    Gains Rs. 48

  • b)
    Loses Rs. 48

  • c)
    Loses Rs. 132

  • d)
    Gains Rs. 132

Correct answer is option 'B'. Can you explain this answer?
Verified Answer
A person deposited Rs. 13,200 in a bank, which pays 14% simple interes...
Interest earned on Rs. 13200 at a rate of 14% = Rs. 1848
Number of shares purchased = 13200/110 = 120
Dividend earned by him on 120 shares which pays a dividend of 15% per share = 120 × [(15/100) × 100] = Rs. 1800
Therefore, net profit = 1848 - 1800 = Rs. 48
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Most Upvoted Answer
A person deposited Rs. 13,200 in a bank, which pays 14% simple interes...
If he had invested in stocks he incurs a loss of 48 rupees so option a is correct
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Community Answer
A person deposited Rs. 13,200 in a bank, which pays 14% simple interes...

Calculating the interest earned from the bank deposit:

- Principal amount (P) = Rs. 13,200
- Rate of interest (R) = 14%
- Time period (T) = 1 year

Simple interest (SI) = (P * R * T) / 100
SI = (13,200 * 14 * 1) / 100
SI = Rs. 1,848

Calculating the dividend earned from the stocks:

- Face value of each stock = Rs. 100
- Number of stocks purchased = 13,200 / 100 = 132
- Dividend rate = 15%

Dividend earned = (Face value * Number of stocks * Dividend rate) / 100
Dividend earned = (100 * 132 * 15) / 100
Dividend earned = Rs. 1,980

Calculating the gain/loss:

Comparing the interest earned from the bank deposit and the dividend earned from the stocks:
Dividend earned - Interest earned = Rs. 1,980 - Rs. 1,848 = Rs. 132

Therefore, the person would have gained Rs. 132 by investing in stocks instead of depositing in the bank. Hence, the correct answer is option 'b) Gains Rs. 132'.
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Question Description
A person deposited Rs. 13,200 in a bank, which pays 14% simple interest. If he rather had invested in Rs. 110 stocks which pay a dividend of 15% on the face value of Rs. 100, how much would he had lost or gained?a)Gains Rs. 48b)Loses Rs. 48c)Loses Rs. 132d)Gains Rs. 132Correct answer is option 'B'. Can you explain this answer? for UPSC 2026 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A person deposited Rs. 13,200 in a bank, which pays 14% simple interest. If he rather had invested in Rs. 110 stocks which pay a dividend of 15% on the face value of Rs. 100, how much would he had lost or gained?a)Gains Rs. 48b)Loses Rs. 48c)Loses Rs. 132d)Gains Rs. 132Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2026 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person deposited Rs. 13,200 in a bank, which pays 14% simple interest. If he rather had invested in Rs. 110 stocks which pay a dividend of 15% on the face value of Rs. 100, how much would he had lost or gained?a)Gains Rs. 48b)Loses Rs. 48c)Loses Rs. 132d)Gains Rs. 132Correct answer is option 'B'. Can you explain this answer?.
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