#### Data Interpretation

• ( 1 ) By investing in 20% stock at 59, one earns Rs. 1600. The investment made is:

• 1) 5000
• 2) 7500
• 3) 5760
• 4) 4768
• Discussion in forum
Solution : To earn Rs.20, investment = Rs. 59.
To earn Rs. 1600, investment = Rs. (59 * 1/20 * 1600) = Rs. 4720.

discussion

• ( 2 ) A man sells Rs.5000, 12 % stock at 156 and uinvests the proceeds parity in 8 % stock at 90 and 9 % stock at 108. He hereby increases his income by Rs. 70. How much of the proceeds were invested in each stock?

• 1) 4000
• 2) 4200
• 3) 4020
• 4) 4002
• Discussion in forum
Solution : S.P of Rs. 5000 stock = Rs.(156/100 * 5000) = Rs. 7800.
Income from this stock = Rs. (12/100 * 5000) = Rs. 600.
Let investment in 8 % stock be x and that in 9 % stock = (7800 - x).
(x * 8/90) + (7800-x)* 9/108 = (600 + 70)
=> 4x/45 + (7800 - x)/12 = 670
=> 16x + 117000 - 15x = (670 * 180)
=> x = 3600
Money invested in 8 % stock at 90 = Rs. 3600.
Money invested in 9 % at 108 = Rs. (7800 - 3600) = Rs. 4200.

discussion

• ( 3 ) Find the market value of the stock if 6% yields 10%.

• 1) 60
• 2) 70
• 3) 80
• 4) 100
• Discussion in forum
Solution : Let the investment be Rs.100 for an income of Rs.10
Therefore, for an income of Rs.6, the investment = 600/10 = Rs.60

discussion

• ( 4 ) A company pays 12.5% dividend to its investors. If an investor buys Rs.50 shares and gets 25% on investment, at what price did the investor buy the shares?

• 1) 6.25
• 2) 25
• 3) 50
• 4) 12.5
• Discussion in forum
Solution : Dividend on 1 share = (12.5 * 50)/100 = Rs.6.25
Rs.25 is income on an investment of Rs.100
Rs.6.25 is income on an investment of Rs. (6.25 * 100)/25 = Rs.25

discussion

• ( 5 ) What is annual income derived from Rs. 1800, 5% Stock at 104?

• 1) 90
• 2) 85
• 3) 89
• 4) 80
• Discussion in forum
Solution : Income from Rs. 100 stocks = Rs. 5
Income from Rs. 1800 stock = Rs. (5/100 * 1800) = Rs. 90.

discussion

• ( 6 ) A Man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 6%, his annual income is:

• 1) 267.3
• 2) 327.8
• 3) 324
• 4) 130.7
• Discussion in forum
Solution : Number of shares = 4455/8.25 = 5400
Face value = (540 * 100) = 5400
Income = ( 6/100 * 5400) = 324

discussion

• ( 7 ) Find the cost of Rs. 6400, 10% stock at 15 discount?

• 1) 2000
• 2) 5440
• 3) 6000
• 4) 5140
• Discussion in forum
Solution : Cost of Rs. 100 stock = Rs. (100 - 15)
Cost of Rs. 6400 stock = Rs. (85/100 * 6400) = Rs. 5440.

discussion

• ( 8 ) Find the cost of Rs. 4500, 8.5% stock at 4 premium?

• 1) 1400
• 2) 5000
• 3) 4000
• 4) 4680
• Discussion in forum
Solution : Cost of Rs. 100 stock = Rs. (100 + 4) = Rs.104
Cost of Rs. 4500 stock = Rs. (104/100 * 4500) = Rs. 4680

discussion

• ( 9 ) The cash realised on selling a 14% stock at Rs. 106.25, brokerage being 1/4%, is :

• 1) RS.105.50
• 2) RS.113.75
• 3) RS.106
• 4) RS.106.50
• Discussion in forum
Solution : Cash realised = Rs. (106.25 - 0.25) = Rs. 106.

discussion

• ( 10 ) A man invested Rs. 5050 in 5% stock at 99 and sold it when the price rose to Rs. 101. He invested the sale proceeds in 8% stock at 88. Find the change in man's income if the Brokerage is Rs. 2

• 1) Rs.190
• 2) Rs.180
• 3) Rs.160
• 4) Rs.170
• Discussion in forum
Solution : Purchase price of the first stock = Rs.99 + Rs.2 = Rs.101
Number of stocks purchased in this case = 5050/101 = 50
Since the face value is not given, it can be taken as Rs.100. So, dividend per share = Rs.5
Income = 50 * 5 = Rs.250
Sale Price of the stock = 101-2 = 99
Amount received by selling the stock = 50 * 99 = 4950
Then he invests this Rs.4950 in 8% stock at 88
Purchase price of this stock = 88+2 = 90
Number of stocks purchased in this case = 4950/90 = 55
Since the face value is not given, it can be taken as Rs.100. So, dividend per share = Rs.8
Income = 55 * 8 = Rs.440
Change in income = 440 -250 = Rs.190

discussion