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Stocks and Shares Practice Test 1

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Question : 13 of 40

Marks: +1, -0

Find the cost of Rs 4,000, 5% stock at 50.

Rs 2,100
Rs 3,350
Rs 2,150
Rs 2,000
None of these

Solution: 👈: Video Solution

Concept:

Cost of stock is calculated using its market price per

\mathrm{Rs}\,100

face value.

Explanation:

Face value of stock

= \mathrm{Rs}\,4000

.

Market price

= \mathrm{Rs}\,50

per

\mathrm{Rs}\,100

stock.

So, cost

= \frac{4000 \times 50}{100}

.

= \mathrm{Rs}\,2000

.

Answer:

The cost is

\mathrm{Rs}\,2000

, which matches option D.

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