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.`