What is the annual income by investing Rs 3000 in `6%` stock at 120?

Options

A. Rs 150
B. Rs 100
C. Rs 200
D. Rs 250

Answer

To find the annual income from investing Rs 3000 in a 6% stock at Rs 120, we can follow these steps:

### Step 1: Understand the Given Information
- Investment Amount (Principal) = Rs 3000
- Rate of Stock = 6%
- Market Value of Stock = Rs 120

### Step 2: Calculate the Income
The formula to calculate the annual income from the investment in stock is:

\[ \text{Annual Income} = \left( \frac{\text{Investment} \times \text{Rate}}{\text{Market Value}} \right) \]

### Step 3: Plug in the Values
Now, substitute the values into the formula:

\[ \text{Annual Income} = \left( \frac{3000 \times 6}{120} \right) \]

### Step 4: Simplify the Calculation
First, calculate the numerator:

\[ 3000 \times 6 = 18000 \]

Now, divide by the market value:

\[ \text{Annual Income} = \frac{18000}{120} \]

### Step 5: Perform the Division
Now, divide 18000 by 120:

\[ \text{Annual Income} = 150 \]

### Conclusion
The annual income from investing Rs 3000 in 6% stock at Rs 120 is Rs 150.

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