Stocks and Shares: Formulas, Shortcuts and Solved Examples — MCQs with Answers (Set 3)

Each share has a face value of Rs 100, but it trades at a market price of Rs 85. The total amount invested is Rs 18955. Number of shares bought = total investment / market price per share. Number of shares = 18955/85 = 223. Check: 223 shares at Rs 85 each cost 223 x 85 = Rs 18955, matching the investment.

Each share has a face value of Rs 50, but it trades at a market price of Rs 41. The total amount invested is Rs 5125. Number of shares bought = total investment / market price per share. Number of shares = 5125/41 = 125. Check: 125 shares at Rs 41 each cost 125 x 41 = Rs 5125, matching the investment.

This is a 12% stock available at a market price of Rs 104. So earning an annual income of Rs 12 needs an investment of Rs 104. Here the target annual income is Rs 288. Investment required = (104/12) x 288 = Rs 2496. Check: investing Rs 2496 at this rate gives (12/104) x 2496 = Rs 288, the target income.

This is a 15% stock available at a market price of Rs 86. So earning an annual income of Rs 15 needs an investment of Rs 86. Here the target annual income is Rs 180. Investment required = (86/15) x 180 = Rs 1032. Check: investing Rs 1032 at this rate gives (15/86) x 1032 = Rs 180, the target income.

This is a 9% stock available at a market price of Rs 73. So earning an annual income of Rs 9 needs an investment of Rs 73. Here the target annual income is Rs 441. Investment required = (73/9) x 441 = Rs 3577. Check: investing Rs 3577 at this rate gives (9/73) x 3577 = Rs 441, the target income.

This is a 8% stock available at a market price of Rs 113. So earning an annual income of Rs 8 needs an investment of Rs 113. Here the target annual income is Rs 32. Investment required = (113/8) x 32 = Rs 452. Check: investing Rs 452 at this rate gives (8/113) x 452 = Rs 32, the target income.

This is a 6% stock available at a market price of Rs 62. So earning an annual income of Rs 6 needs an investment of Rs 62. Here the target annual income is Rs 288. Investment required = (62/6) x 288 = Rs 2976. Check: investing Rs 2976 at this rate gives (6/62) x 2976 = Rs 288, the target income.

This is a 4% stock available at a market price of Rs 65. So earning an annual income of Rs 4 needs an investment of Rs 65. Here the target annual income is Rs 128. Investment required = (65/4) x 128 = Rs 2080. Check: investing Rs 2080 at this rate gives (4/65) x 2080 = Rs 128, the target income.

This is a 10% stock available at a market price of Rs 119. So earning an annual income of Rs 10 needs an investment of Rs 119. Here the target annual income is Rs 130. Investment required = (119/10) x 130 = Rs 1547. Check: investing Rs 1547 at this rate gives (10/119) x 1547 = Rs 130, the target income.

This is a 12% stock available at a market price of Rs 69. So earning an annual income of Rs 12 needs an investment of Rs 69. Here the target annual income is Rs 108. Investment required = (69/12) x 108 = Rs 621. Check: investing Rs 621 at this rate gives (12/69) x 621 = Rs 108, the target income.

This is a 15/2% stock available at a market price of Rs 116. So earning an annual income of Rs 15/2 needs an investment of Rs 116. Here the target annual income is Rs 225. Investment required = (116/15/2) x 225 = Rs 3480. Check: investing Rs 3480 at this rate gives (15/2/116) x 3480 = Rs 225, the target income.

This is a 10% stock available at a market price of Rs 107. So earning an annual income of Rs 10 needs an investment of Rs 107. Here the target annual income is Rs 310. Investment required = (107/10) x 310 = Rs 3317. Check: investing Rs 3317 at this rate gives (10/107) x 3317 = Rs 310, the target income.

This is a 9% stock available at a market price of Rs 75. So investing Rs 75 earns an annual income of Rs 9. Here the investor puts in Rs 2550 instead. Income = (9/75) x 2550 = Rs 306. Check: Rs 306 divided by 2550, then multiplied by 75, gives back Rs 9, the income per Rs 75 invested.

This is a 12% stock available at a market price of Rs 125. So investing Rs 125 earns an annual income of Rs 12. Here the investor puts in Rs 1625 instead. Income = (12/125) x 1625 = Rs 156. Check: Rs 156 divided by 1625, then multiplied by 125, gives back Rs 12, the income per Rs 125 invested.

This is a 10% stock available at a market price of Rs 63. So investing Rs 63 earns an annual income of Rs 10. Here the investor puts in Rs 2835 instead. Income = (10/63) x 2835 = Rs 450. Check: Rs 450 divided by 2835, then multiplied by 63, gives back Rs 10, the income per Rs 63 invested.

This is a 10% stock available at a market price of Rs 95. So investing Rs 95 earns an annual income of Rs 10. Here the investor puts in Rs 380 instead. Income = (10/95) x 380 = Rs 40. Check: Rs 40 divided by 380, then multiplied by 95, gives back Rs 10, the income per Rs 95 invested.

This is a 15% stock available at a market price of Rs 94. So investing Rs 94 earns an annual income of Rs 15. Here the investor puts in Rs 4512 instead. Income = (15/94) x 4512 = Rs 720. Check: Rs 720 divided by 4512, then multiplied by 94, gives back Rs 15, the income per Rs 94 invested.

This is a 10% stock available at a market price of Rs 92. So investing Rs 92 earns an annual income of Rs 10. Here the investor puts in Rs 4232 instead. Income = (10/92) x 4232 = Rs 460. Check: Rs 460 divided by 4232, then multiplied by 92, gives back Rs 10, the income per Rs 92 invested.

This is a 5% stock available at a market price of Rs 79. So investing Rs 79 earns an annual income of Rs 5. Here the investor puts in Rs 1817 instead. Income = (5/79) x 1817 = Rs 115. Check: Rs 115 divided by 1817, then multiplied by 79, gives back Rs 5, the income per Rs 79 invested.

This is a 4% stock available at a market price of Rs 75. So investing Rs 75 earns an annual income of Rs 4. Here the investor puts in Rs 3300 instead. Income = (4/75) x 3300 = Rs 176. Check: Rs 176 divided by 3300, then multiplied by 75, gives back Rs 4, the income per Rs 75 invested.

This is a 4% stock available at a market price of Rs 117. So investing Rs 117 earns an annual income of Rs 4. Here the investor puts in Rs 3510 instead. Income = (4/117) x 3510 = Rs 120. Check: Rs 120 divided by 3510, then multiplied by 117, gives back Rs 4, the income per Rs 117 invested.

This is a 10% stock available at a market price of Rs 94. So investing Rs 94 earns an annual income of Rs 10. Here the investor puts in Rs 1504 instead. Income = (10/94) x 1504 = Rs 160. Check: Rs 160 divided by 1504, then multiplied by 94, gives back Rs 10, the income per Rs 94 invested.

This is a 4% stock available at a market price of Rs 68. So investing Rs 68 earns an annual income of Rs 4. Here the investor puts in Rs 136 instead. Income = (4/68) x 136 = Rs 8. Check: Rs 8 divided by 136, then multiplied by 68, gives back Rs 4, the income per Rs 68 invested.

This is a 13/2% stock available at a market price of Rs 138. So investing Rs 138 earns an annual income of Rs 13/2. Here the investor puts in Rs 5520 instead. Income = (13/2/138) x 5520 = Rs 260. Check: Rs 260 divided by 5520, then multiplied by 138, gives back Rs 13/2, the income per Rs 138 invested.

This is a 9% stock, so it pays Rs 9 a year for every Rs 100 of face value. Dividend is always calculated on face value, never on market value. The market price of Rs 106 given here has no effect on this calculation. Here the investor holds Rs 8200 of face value. Income = (9/100) x 8200 = Rs 738. Check: Rs 738 divided by 8200, then multiplied by 100, gives back Rs 9, the quoted rate.