To produce an annual income of Rs. 500 in a 4% stock at 90, the amount of stock needed is:

A. 11250
B. 12500
C. 18000
D. None of these
Answer: B

Explanation:

For an income of Rs. 4, stock needed = 100
For an income of Rs. 500, stock needed = (100/4 x 500)
                                                              = 12500