What is a better investment, 4% stock at ₹ 120 or  3% stock

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 Multiple Choice QuestionsMultiple Choice Questions

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1.

What is a better investment, 4% stock at ₹ 120 or  3% stock at ₹ 80?

  • First

  • Second

  • Both

  • Both


A.

First

4% stock at ₹ 120 = 4% of 120
                         equals space 4 over 100 cross times 120 space equals ₹ space 4.80
and 3% stock at ₹ 80 = 3% of 80
                                equals 3 over 100 cross times 80
                                = ₹ 2.40
It is clear that first investment is better. 

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