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A man sells Rs.5000, 12 % stock at 156 and uinvests the proceeds parity in 8 % stock at 90 and 9 % stock at 108. He hereby increases his income by Rs. 70. How much of the proceeds were invested in each stock?

A man sells Rs.5000, 12 % stock at 156 and uinvests the proceeds parity in 8 % stock at 90 and 9 % stock at 108. He hereby increases his income by Rs. 70. How much of the proceeds were invested in each stock? Correct Answer 4200

S.P of Rs. 5000 stock = Rs.156100*5000= Rs. 7800. 

 

Income from this stock = Rs.12100*5000 = Rs. 600.  

 

Let investment in 8 % stock be x and that in 9 % stock = (7800 - x).

 

Therefore,  

 

x*890+7800-x*9108=600+70  

 

4x45+7800-x12=670⇔x=3600 

 

Therefore,  Money invested in 8 % stock at 90 = Rs. 3600.

 

Money invested in 9 % at 108 = Rs. (7800-3600) = Rs. 4200.

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