Does this make any sense to you...?

Question

A person sold 4% stock worth Rs.7800, acquired at par Rs.100, for Rs.95 and bought 5% stock at par Rs.100. With the remaining money, he purchased Rs.10, 5% shares at par. What was the increase in his annual income?

1) Rs. 68.50 2) Rs.58.50 3) Rs. 55.00 4) None of these

Answer 1

Earn money-

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Answer 2

4% X 7800= 312  that is what is being earned before the sale.

7800 X .95  = 7410  is the sale price that is available to purchase new stocks

7410 is used to buy stocks that pay 5 % they are purchased at par value so 7410 X 5% = 370.5 that is what is earned after the sale and purchase

370.5 - 312 = 58.5  = answer B