 Hello and welcome to the session. In this session, we are going to discuss the following question and the question says that, which is a better investment? 3.5% stock at $91 or 4% stock at $102. What equal sums should be invested in the two stocks so that the difference in the income from these stocks is $10? In the first case, we have 3.5% stock, $91. This means market value of one share is $91. The nominal value or the face value is $100. The dividend is equal to 3.5% which is equal to 7.2%. So the income on $91 is equal to 7.2. Therefore, income on $100 is equal to 7.2 into 1.91 into $100 which is equal to $50 by $13. That is equal to $3.84. Now, in the second case, we have 4% stock $102. Therefore, market value of one share is equal to $102. The nominal or the face value is equal to $100. Dividend is equal to 4%. Income on $100 is equal to 4 upon 102 into $100 which is equal to $200 upon 51. That is $3.92. Now, in the first case, the income on $100 is $3.84 and in the second case, the income on $100 is $3.92. So the second investment is better. Now again, the income on $100 in the first case is $50 upon $13 and in the second case is $200 upon $51. So the difference in the income to stocks equal to $200 upon 51 minus $50 upon $13 which is equal to $200 into $13 minus $50 into $51 upon $663 as $663 is the LCM of $51 and $13. So this is equal to $2600 minus $2550 upon $663. That is equal to $50 upon $663. Now to get the difference of $50 upon $663, investment in each stock is equal to $100. Therefore, to get the difference of $10, investment in each stock is equal to $100 into 663 upon 50 into $10 which is equal to $13,260. Hence, we have that the second investment is better. Equal sums invested is equal to $13,260. This completes our session. Hope you enjoyed the session.