6.A man has income of Rs. 2500 by investing in 15% debentures of face value of Rs. 100 and available for Rs. 104. If the brokerage is 1%, what is his investment? A) 17507 B) 17500 C) 17550 D) 18000 View Answer Report DiscussAnswer: Option AExplanation:Note: Brokerage is always calculated on Market value. Investment / (Market value (1 + % brokerage) = (Annual income x 100 ) / (Dividend % x Face value) Investment / ( 104 ( 1+1 %)) =( 2500 X 100 ) / (15 X 100) => 166.67 X 104 X (101/ 100)= Rs 17507
7.Find the purchase cost of 100 shares of Rs. 10 each at 3/8 discount brokerage being 1/8 per share A) 970 B) 975 C) 980 D) 990 E) 974 View Answer Report DiscussAnswer: Option BExplanation:Market value = Face value - discount .'. Cost of 1 share = Face value - discount + brokerage =(10- (3/8)) + (1/8)= 9 (3/4) Cost of 100 shares = 100 X 9 (3/4)=(100 X 39)/ 4= Rs. 975
8.Find the market value of a 6% stock in which an income of Rs. 300 is derived by investing Rs. 1,220 brokerage being (1/4) % A) 25 B) 24.50 C) 24.15 D) 26 View Answer Report DiscussAnswer: Option CExplanation:(Anunal Income / rate %)= Inverstment / ( Market value + bro ker age) there for (300/6)= 1220/ (Market Value + (1/4)) Market Value+ (1/4)=24.4 => Market Value= 24.4 - (1/4)= Rs. 24.15
9.A man buys Rs. 30 shares in a company which pays 9% dividend. Hie money invested is such that it gives 10% on investment. At what price did he buy the shares? A) 30 B) 27 C) 26 D) 25 E) 28 View Answer Report DiscussAnswer: Option BExplanation:Let cost of each share = Rs. x Them, 30 X (9/100)= x * (10/100) => x =( 30 X 9 X 100) / ( 100 X 10)= Rs. 27
10.Find the annual income derived by investing Rs. 2,700 in 4% stock at 112? A) 96.43 B) 90 C) 95 D) 100 View Answer Report DiscussAnswer: Option AExplanation:Total investment= 2700 Annual income = (2700/112) X 4 = Rs. 96.43
