Find the annual income derived by investing Rs.770 in `(4)1/2%` stock at 96?

Options

A. Rs 56
B. Rs 46
C. Rs 39
D. Rs 36

Answer

To find the annual income derived by investing Rs. 770 in \(4 \frac{1}{2}\%\) stock at 96, we can follow these steps:

### Step 1: Understand the given values
- Investment amount (Principal) = Rs. 770
- Rate of stock = \(4 \frac{1}{2}\% = \frac{9}{2}\%\)
- Market value = 96

### Step 2: Calculate the annual income
The formula for calculating the annual income from stock is:

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

### Step 3: Substitute the values into the formula
Substituting the values we have:

\[ \text{Annual Income} = \left( \frac{770 \times \frac{9}{2}}{96} \right) \]

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

\[ 770 \times \frac{9}{2} = 770 \times 4.5 = 3465 \]

Now, substitute this back into the equation:

\[ \text{Annual Income} = \frac{3465}{96} \]

### Step 5: Perform the division
Now, divide 3465 by 96:

\[ \text{Annual Income} = 36.09375 \]

### Step 6: Round off the answer
Rounding off to the nearest whole number, we get:

\[ \text{Annual Income} \approx 36 \]

### Final Answer
Thus, the annual income derived by investing Rs. 770 in \(4 \frac{1}{2}\%\) stock at 96 is approximately Rs. 36.

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