A man sells Rs. 6,000 of 8% stock at 95 and invests the proceeds in 10% stock at 114. What is the change in his annual income?
Correct answer C. Increase of Rs. 20
Explanation
Old income = 8% of 6,000 = Rs. 480. Proceeds = Rs. 5,700, buying 5,700 × 100/114 = Rs. 5,000 of new stock giving Rs. 500. Income rises by Rs. 20.
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