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deepaksoni
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Which is better investment : 6% Rs. 100 shares at Rs. 120 or 8% Rs. 10 shares at Rs. 15

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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

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  1. Case1:-
    Income on Rs 120=6%of Rs100=Rs.6
    Income on Rs 1= 6/120=1/20
    Case2:-

    Income on Rs15=8% of Rs10=4/5
    income on Rs 1= (4/5)/15=8/150
    since 8/150>1/20
    So 2nd investment is better.

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