Question

To produce an annual income of rs. 800 from a 8% stock at 90, the amount of stock needed is:

Answer 1

the return of 8 percent is on the nominal value of rs 100 .... therefore to produce 800 ........I'll divide 800/8% = 10000 is the nominal value

since the stock is bought at 90 ie market price

find the market price of 10000
wch is 9000