A guy puts half of his money in a 9 percent stock at 96 percent and the rest in a 12 percent stock at 120 percent. He must invest the money in the following ratio to receive equal profits from both:
A. 3:4
B. 3:5
C. 4:5
D. 16:5
Answer:D
A guy puts half of his money in a 9 percent stock at 96 percent and the rest in a 12 percent stock at 120 percent. He must invest the money in the following ratio to receive equal profits from both:
A. 3:4 B. 3:5 C. 4:5 D. 16:5
Explanation: Investment = Rs. 96/9= Rs. 32/3 for a Re. 1 in 9 percent shares at 96.Investment = Rs. 120 /12 = Rs. 10 for an income of Re. 1 in 12 percent shares at 120.Investment ratio = 32/3 : 10 = 32 : 30 = 16 : 15.