SOLUTION: Mr Chidambaram after selling 6.5% stock at Rs.94 realises a sum of Rs.35720. Then he invests 1/4 of the amount in 5.6% stock at Rs.94, 3/5 of the amount at Rs.120 in 6.5% stock and

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Mr Chidambaram after selling 6.5% stock at Rs.94 realises a sum of Rs.35720. Then he invests 1/4 of the amount in 5.6% stock at Rs.94, 3/5 of the amount at Rs.120 in 6.5% stock and      Log On

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Question 1085226: Mr Chidambaram after selling 6.5% stock at Rs.94 realises a sum of Rs.35720. Then he invests 1/4 of the amount in 5.6% stock at Rs.94, 3/5 of the amount at Rs.120 in 6.5% stock and the remaining in 8% stock at Rs.48. The change in his income is?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
make your self a table as shown below:

he sells his 6.5% stock for 35720.

then he takes that 35720 and invests 1/4 in 5.6% stock and 3/5 in 6.5% stock and the remaining in 8% stock.

1/4 * 35720 = 8930
3/5 * 35720 = 21432
remaining = 5358

the income on his original investment was .065 * 35720 = 2321.80

income on new investment 1 is .056 * 1/4 * 35720 = 500.08
income on new investment 2 is .065 * 3/5 * 35720 = 1393.08
income on new investment 3 is .08 * 3/20 * 35720 = 428.64

total income for the new investments is 2321.80

he's making exactly the same income per year from the new investments as he made per year on the original investment.