Answer:
Option A
Explanation:
Let the investment in each case be Rs. (105 x 94).
Case I : 7 (1/2) % stock at 105
On investing Rs. 105, income = Rs 15/2
On investing Rs. (105 x 94), income = Rs. ( (15/2) x (1/105) x 105 x 94= 705
Case II : 6 (1/2) % stock at 94
On investing Rs. 94, income = Rs. 13/2
On investing Rs. (105 x 94), income = Rs. ( (13/2) x (1/94) x 105 x 94)=Rs. 682.50.
Clearly, the income from 7 (1/2) % stock at 105 is more.
Hence, the investment in 7 (1/2) % stock at 105 is better
