A man invested Rs. 26000 in 5% stock at 104. He sold the stock when the price rose to Rs. 120 and invested the sale proceeds in 6% stock. By doing this his income increased by Rs. 2500. At what price did he purchase the second stock?
Choose the correct choice from the following answers:	A) 125	B) 40	C) 48	D) 35	E) 50
Assuming that face value of the first stock = Rs.100 as it is not given in the question   Since it is a 5% stock, we can take the dividend per stock = Rs.5   Market Value of the first stock = Rs.104   Investment on the first stock = Rs.26000   Number of stocks purchases = 26000/104= 
<gadget id="calculator">26000/104</gadget>
<output>250</output>
250   His total income from all these stocks= Rs.250 × 5 = Rs.1250   He sells each of this stock at Rs.120   ie, amount he earns = Rs.120 × 250 = Rs.30000   He invest this Rs.30000 in 6% stock (here also face value is not given and hence take it as Rs.100)   His new income = Rs.(1250 + 2500) = Rs.3750   ie, By Rs.30000 of investment , he earns an income of Rs.3750   To get an income of Rs.6, investment needed = 30000×6/3750=Rs.48   This is the market value of the second stock   Answer is 48.
<result>C</result>
A man invested Rs. 26000 in 5% stock at 104. He sold the stock when the price rose to Rs. 120 and invested the sale proceeds in 6% stock. By doing this his income increased by Rs. 2500. At what price did he purchase the second stock?