A man invests Rs. 27600 in 4% stock at 92. He sold Rs. 20000 stock when the price rose to Rs. 96, and sold the remaining stock when the market value fell to Rs. 90. How much does he gain or loss in the transaction?
Gain = Rs. 600
Correct AnswerLoss = Rs. 300
Incorrect AnswerLoss = Rs. 650
Incorrect AnswerGain - Rs. 650
Incorrect AnswerExplanation:
tock purchased by investing Rs. 27600 in 4% stock at 92 = Rs. 27600 x 100 /92 = 30000
Money realised by selling Rs. 20000 stock at market value of Rs. 96 = Rs. 20000 x 96 /100 = 19200
Remaining stock = Rs. (30000 - 20000) = Rs. 10000
Money realised by selling Rs. 10000 stock at Rs. 90 = Rs. 10000 x 90 /100 = 9000
Total money realised by selling the whole stock = Rs. (19200 + 9000) = Rs. 28200
Money invested = Rs. 27600
Gain = Rs. (28200 - 27600) = Rs. 600.
Hence, option 1 is the correct answer.
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By: Amit Kumar