In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of___________?
Q1. In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of___________?
Answer: Rs. 6240
Explanation: To earn Rs. 650 from a 10% stock, face value needed = 650/0.10 = Rs. 6500; at market price Rs. 96 per Rs. 100 face value, investment = 6500 × 96/100 = Rs. 6240.