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Stocks & Shares Questions and Answers

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31.

What is the cost of buying Rs. 6000 of 5% stock at 95 ?

Answer: B

Correct answer: Rs. 5700

The quotation of 95 means each Rs. 100 of stock costs Rs. 95.

\[\text{Cost} = \frac{6000}{100} \times 95 = \text{Rs. } 5700\]

The 5% rate does not enter the purchase price at all; it governs only the income the stock will pay.

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32.

Which of the following is a better investment?

Answer: D

For an investment of Rs.80, income = Rs.10
For an investment of Rs.100, income = Rs. (100 * 10)/80 = Rs.12.5
For an investment of Rs.70, income = Rs.15
For an investment of Rs.100, income = Rs. (100 * 15)/70 = Rs.21.43
For an investment of Rs.75, income = Rs.12
For an investment of Rs.100, income = Rs. (100 * 12)/75 = Rs.16

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33.

In how many ways can we arrange the word ‘FUZZTONE’ so that all the vowels come together?

Answer: C

FUZZTONE has eight letters with Z appearing twice: vowels U, O, E and consonants F, Z, Z, T, N.

Treat the three vowels as one block, giving six units among which Z repeats:

\[ \frac{6!}{2!} = 360 \]

Within the block the three distinct vowels arrange in

\[ 3! = 6 \text{ ways} \]

\[ 360 \times 6 = 2160 \]

The repeated Z is divided out among the units, but the vowels are all different so no division is needed inside the block.

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