Question

At what price should a 6.25% Rs. 50 share be quoted when the money is worth 10%?

Answer 1

Interest on Rs. 100
worth = Rs. 10
If the interest is Rs. 10, then market value = Rs. 100
and if interest is Rs. 6.25, then market

value = `(50 xx 6.25)/(10)`

= `(50 xx 625)/(10 xx 100)`

= Rs. 31.25.