Which is better investment, 12% stock at par with an income tax at the rate of 5paise per rupee or 14 2/7 % stock at 120 free from income tax? Choose the correct option
A) 12%  B) 14 2/7%  C) Both are equally good  D) Cannot be compared  E) None of these
Let the investment in each (100*120)   Income in first case = (12/100*100*120)= 
<gadget id="calculator">(12/100*100*120)</gadget>
<output>1_440</output>
1440   Net income=(1440-5/100*1440)= 
<gadget id="calculator">(1440-5/100*1440)</gadget>
<output>1_368</output>
1368   Income in second case=((100/2*20)*100*120)=1428.57   Clearly, 14 2/7 % stock at 120 is better   Option 14 2/7%
<result>B</result>
Which is better investment, 12% stock at par with an income tax at the rate of 5paise per rupee or 14 2/7 % stock at 120 free from income tax?