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Question
Which is better investment? 7% of ₹ 100 shares at ₹ 120 (or) 8% of ₹ 100 shares at ₹ 135.
Solution
Let the investment in each case be ₹ (120 × 135)
Case 1: Income from 7% of ₹ 100 shares at ₹ 120 = `7/120 xx (120 xx 135)`
= 7 × 135
= ₹ 945
Case 2: Income from 8% of ₹ 100 shares at ₹ 135 = `8/135 xx (120 xx 135)`
= 8 × 120
= ₹ 960
∴ 8% of 100 shares at ₹ 135 is better investment.
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