Question

4. Which is better investment 8% at Rs. 80 or 15% at Rs. 120.

Answer 1

Answer:

Income from first stock on Rs .120 = Rs. 4

Income from second stock on Rs. 80 = Rs. 3

∴Income from second stock on Rs. 120=

80

3×120

=Rs.4.50

Hence second investment is better

Answer 2

Answer: To determine which investment is better, we need to compare the returns on the investments.

Step-by-step explanation:

For the first investment, at 8% interest on Rs. 80, the return after one year would be:

Rs. 80 x 8/100 = Rs. 6.40

So the total amount after one year would be:

Rs. 80 + Rs. 6.40 = Rs. 86.40

For the second investment, at 15% interest on Rs. 120, the return after one year would be:

Rs. 120 x 15/100 = Rs. 18

So the total amount after one year would be:

Rs. 120 + Rs. 18 = Rs. 138

Comparing the two investments, the second investment of 15% interest at Rs. 120 yields a higher return of Rs. 18, as compared to the first investment of 8% interest at Rs. 80, which yields a return of only Rs. 6.40.

Therefore, the second investment of 15% interest at Rs. 120 is a better investment as it yields a higher return on the initial investment as compared to the first investment of 8% interest at Rs. 80.To determine which investment is better, we need to compare the returns on the investments.

For the first investment, at 8% interest on Rs. 80, the return after one year would be:

Rs. 80 x 8/100 = Rs. 6.40

So the total amount after one year would be:

Rs. 80 + Rs. 6.40 = Rs. 86.40

For the second investment, at 15% interest on Rs. 120, the return after one year would be:

Rs. 120 x 15/100 = Rs. 18

So the total amount after one year would be:

Rs. 120 + Rs. 18 = Rs. 138

Comparing the two investments, the second investment of 15% interest at Rs. 120 yields a higher return of Rs. 18, as compared to the first investment of 8% interest at Rs. 80, which yields a return of only Rs. 6.40.

Therefore, the second investment of 15% interest at Rs. 120 is a better investment as it yields a higher return on the initial investment as compared to the first investment of 8% interest at Rs. 80.

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