Question

What is the annual income derived by investing ₹6800 in 10\% stock at 136?

• A. ₹500
• B. ₹600
• C. ₹400
• D. ₹300

Hint:

To calculate annual income from stock: \[ \text{Income} = \left( \frac{\text{Face value of stock purchased} \times \text{Rate}}{100} \right) \]

Answer 1

The Correct Option is A

Step 1: Find face value of stock purchased.
Market price = 136, face value = ₹100.
Amount invested = ₹6800
Face value of stock bought: \[ = \frac{6800}{136} \cdot 100 = 50 \cdot 100 = ₹5000 \] Step 2: Income from 10\% stock on ₹5000: \[ \text{Income} = \frac{10}{100} \cdot 5000 = ₹500 \]