IBPS PO Quantitative Aptitude: Simple Interest and Stocks questions with solutions

Q1. In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:

1. Rs. 3100
2. Rs. 6240
3. Rs. 6500
4. Rs. 9600

Answer: Rs. 6240

A 10% stock gives an annual income of 10% of face value. To earn Rs. 650, the face value needed is Rs. 6500. Since the stock is bought at Rs. 96 per Rs. 100 face value, the investment is \(6500\times 96/100 = 6240\).