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1. A wants to secure an annual income of Rs. 1500 by investing in 15% debentures of face value Rs. 100 each and available for Rs. 104 each. If the brokerage is 1%, then the sum of money he should invest is -
= 15% of Rs. 100
= Rs. 15
Number of debentures required
= Rs.
= Rs. 100
Cost of each debenture
= Rs. (104 + 1% of 104)
= (104 + 1.04)
= Rs. 105.04
∴ Total investment
= Rs. (105.04 × 100)
= Rs. 10504
Solution:
Income on each debenture = 15% of Rs. 100
= Rs. 15
Number of debentures required
= Rs.
= Rs. 100
Cost of each debenture
= Rs. (104 + 1% of 104)
= (104 + 1.04)
= Rs. 105.04
∴ Total investment
= Rs. (105.04 × 100)
= Rs. 10504