Which is better investment
1  3% Rs 100 shares at Rs 87 or 4% Rs 100 shares at Rs 114
Plz explain in detail

Asked by lovemaan5500 | 11th Dec, 2017, 07:39: PM

Expert Answer:

begin mathsize 16px style Since space Profit percent sign space on space straight M. straight V equals Dividend percent sign space on space straight N. straight V
In space first space case
straight P percent sign space on space Rs. space 87 equals 3 percent sign space on space Rs. space 100
rightwards double arrow straight P over 100 cross times Rs. space 87 equals 3 over 100 cross times Rs. space 100
rightwards double arrow Profit equals 3.4 percent sign

In space second space case
straight P percent sign space on space Rs. space 114 equals 4 percent sign space on space Rs. space 100
rightwards double arrow straight P over 100 cross times Rs. space 114 equals 4 over 100 cross times Rs. space 100
rightwards double arrow Profit equals 3.5 percent sign

The space investment space giving space greater space profit percent sign space will space be space better.
Hence comma space the space second space investment space is space better. end style

Answered by Rashmi Khot | 12th Dec, 2017, 11:20: AM