Question:10. A man sells Rs. 5000, 12% stock at 156 and invests the proceeds party in 8% stock at 90 and 9% stock at 108. He thereby increase his income by Rs. 70. How much of the proceeds were investing in each stock ?
Answer
S.P. of Rs. 5000 stock`= Rs. (156/100 xx 5000)` `= Rs. 7800.` Income from this stock` = Rs. (12/100 xx 5000)` `= Rs. 600.` Let investment in 8% stock be x & that in 9% stock = (7800 - x). `:. (x xx 8/90) + (7800 - x) xx 9/108 = (600 + 70)` `or 4x/45 + (7800 - x)/12` `= 670` `or 16x + 117000 - 15x` `= (670 xx 180) or x = 3600.` :. Money invested in 9% stock at 108 `= Rs. (7800 - 3600)` `= Rs. 4200.`