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What investment will be required to purchase $ 90000 of 8% stock at 110?
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- $ 88000
- $ 99000
- $ 88500
- $ 9950
Correct Option: B
Here , purchase stock = $ 90000
Market value of $ 100 stock = $ 110.
Market value of $ 1 stock
| = $ |  | 110 |  |
| 100 |
∴ Market value of $ 90000 stock = Market value of $ 1 stock x purchase stock
| = $ | | 110 | x 90000 | | = $ 99000 |
| 100 |
∴ An investment of $ 99000 is required to purchase $ 90000 of 8% stock at 110.
