Discussion

An investment of Rs. 9600 in a 10% stock yields an income of Rs. 800. What is the market value of the stock ?

Answer: A

Correct answer: Rs. 120

An income of Rs. 800 at Rs. 10 per Rs. 100 of stock means the face value held is

\[\frac{800}{10} \times 100 = \text{Rs. } 8000\]

Rs. 9600 was paid for Rs. 8000 of stock, so each Rs. 100 cost

\[\frac{9600}{8000} \times 100 = \text{Rs. } 120\]

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