Two companies have shares of 7% at Rs 116 and 9% at Rs 145 respectively. In which of the shares would the investment be more profitable ?
Answer & explanation
Correct answer: option 1
The correct answer is option (1) : 9% shares at ₹145 are more profitable.
In 1st case :
Income on ₹116 = 7% of ₹ 100 $= ₹ 7$
∴ Income on $₹1 = ₹\frac{7}{116}$
In end case :
Income on ₹ 145 = 9% of ₹100 $= ₹ 9$
Now LCM of 116 and 145 = 580
$\frac{7}{116}×\frac{5}{5}=\frac{35}{580}$
$\frac{9}{145}×\frac{4}{4}=\frac{36}{580}$
$∴36> 45 $
∴ 9% shares at ₹145 are more profitable