To produce an annual income of Rs. 1200 from a 12% stock at 90, the amount of stock needed is:

A. Rs. 10800
B. Rs. 10000
C. Rs. 14400
D. Rs. 16000
Answer: B

Explanation:  

For an income of Rs. 12, stock needed = 100
For an income of Rs. 1200, stock needed = 100 * 1200/12 = 10000