Question

Two companies have shares of 7% at Rs116 and 9% at Rs 145 respectively. In which of the shares would the investment be more profitable ?

Answer 1

for 1st company
N.V.=rs100
d%=7%
M.V.=rs 116

we.have formula
d% ×N.V.=P%M.V.
7/100×100=P/100×116
P=6.03%

for 2nd
N.V.=rs100
d%=9%
M.V.=rs 145
again same formula
d%×N.V=P%*N.V.
P=6.20%
so 2nd investment is more better because profit is more

Answer 2

Answer:

Shares of 9% at Rs.145 would have  the investment be more profitable.

Step-by-step explanation:

Given : Two companies have shares of 7% at Rs.116 and 9% at Rs 145 respectively.

To find : In which of the shares would the investment be more profitable ?

Solution :

Profit on shares of 7% at Rs.116

$P_1=116\times \frac{7}{100}$

$P_1=\ 8.12$

Profit on shares of 9% at Rs 145

$P_2=145\times \frac{9}{100}$

$P_2=\ 13.05$

Now, Comparing the profit

$P_2>P_1\\13.05>8.12$

Therefore, Shares of 9% at Rs.145 would have  the investment be more profitable.