Explain simply why (B) is the correct answer to: In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:
Options:
(A) Rs. 3100
(B) Rs. 6240
(C) Rs. 6500
(D) Rs. 9600
(E) Rs. 8600. Explanation:
To get Rs. 10, Investment is 96
To get Rs. 650, investment is (96/10)*650 = 6240