What annual income will be derived by investing rs. 1547 in 13 percent railway stock at 119?

Options

A. Rs 189
B. Rs 179
C. Rs 169
D. Rs 159

Answer

To find the annual income derived from investing Rs. 1547 in 13% railway stock at a market price of Rs. 119, we can follow these steps:

### Step-by-Step Solution:

1. **Identify the given values:**
- Investment Amount (Principal) = Rs. 1547
- Rate of Interest = 13%
- Market Value of the Stock = Rs. 119

2. **Use the formula for annual income derived from the investment in stock:**
\[ \text{Annual Income} = \left(\frac{\text{Investment} \times \text{Rate}}{\text{Market Value}}\right) \]

3. **Substitute the values into the formula:**
\[ \text{Annual Income} = \left(\frac{1547 \times 13}{119}\right) \]

4. **Calculate the numerator:**
\[ 1547 \times 13 = 20111 \]

5. **Now divide the result by the market value:**
\[ \text{Annual Income} = \frac{20111}{119} \]

6. **Perform the division:**
\[ \text{Annual Income} \approx 169 \]

7. **Conclusion:**
The annual income derived from the investment is Rs. 169.