Question

Which is better investment:
(10%,₹100 shares at
₹120) or (8%, ₹100 shares at ₹72)?​

Answer 1

Answer:

Step-by-step explanation:

Let investment in each case be ₹(100 x 72)

CASE 1 -

By investing ₹100, annual income = ₹10

By investing ₹(100 x 72), annual income = ₹(10/120) x (100 x 72) = ₹600

CASE 2 -

By investing ₹100, annual income = ₹8

By investing ₹(100 x 72), annual income = ₹(8/90) x (100 x 72) = ₹640

Therefore CASE 2 is a better investment.