A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:
31 : 44
31 : 27
16 : 15
35 : 44
Explanation:
In case of stock1, if he invest Rs.105, he will get a dividend of Rs.12 [assume face value = 100]
In case of stock2, if he invest Rs.88, he will get a dividend of Rs.8 [assume face value = 100]
ie, if he invest Rs.$\dfrac{(88 \times 12)}{8}$, he will get a dividend of Rs.12
Required ratio = 105 : $\dfrac{(88 \times 12)}{8}$ = 105 : $(11 \times 12)$ = 35 : $(11 \times 4)$ = 35 : 44