this question from the book -ML aggarwal( avichal publication)class 10th , chapter3, shares and dividends ……..
we have been given two situations 6% Rs. 100 shares at Rs. 120 or 8% Rs. 10 shares at Rs. 15. so we have to find out which of them is better investment. please explain in detail.
Q no. 23, exercise 3, ML Publication, share and dividends
Income on Rs 120=6%of Rs100=Rs.6
Income on Rs 1= 6/120=1/20
Income on Rs15=8% of Rs10=4/5
income on Rs 1= (4/5)/15=8/150
So 2nd investment is better.