Mathematics

Which is better investment : 16% of ₹ 100 shares at 80 or 20% ₹ 100 shares at 120?

60 Likes

Since, Profit% on M.V. = Dividend% on N.V.

In first case :

P% on ₹ 80 = 16% on ₹ 100

$\Rightarrow \dfrac{P}{100} \times 80 = \dfrac{16}{100} \times 100 \\[1em] \Rightarrow P = \dfrac{16}{80} \times 100 = 20\%.$

In second case :

P% on ₹ 120 = 20% on ₹ 100

$\Rightarrow \dfrac{P}{100} \times 120 = \dfrac{20}{100} \times 100 \\[1em] \Rightarrow P = \dfrac{20}{120} \times 100 = 16\dfrac{4}{6}\%.$

Hence, 16% of ₹ 100 shares at 80 is the better investment.

Answered By

20 Likes