Which is better investment: 11% stock at 143 or 9$ \dfrac{3}{4} $% stock at 117?
11% stock at 143
9$ \dfrac{3}{4} $% stock at 117
Both are equally good
Cannot be compared, as the total amount of investment is not given.
Explanation:
Let investment in each case be Rs. $(143 \times 117)$.
Income in 1st case = Rs.$ \left(\dfrac{11}{143} \times 143 \times 117\right) $= Rs. 1287. |
Income in 2nd case = Rs.$ \left(\dfrac{39}{4 \times 117} \times 143 \times 117\right) $= Rs. 1394.25 |
Clearly, 9$ \dfrac{3}{4} $% stock at 117 is better. |