A wants to secure an annual income of Rs. 1500 by investing in 15% debentures of face value Rs. 100 each and available for Rs. 104 each. If the brokerage is 1%, then the sum of money he should invest is -

Answer: Option A

Income on each debenture
= 15% of Rs. 100
= Rs. 15
Number of debentures required
= Rs. $$\left(\frac{1500}{15}\right)$$
= Rs. 100
Cost of each debenture
= Rs. (104 + 1% of 104)
= (104 + 1.04)
= Rs. 105.04
∴ Total investment
= Rs. (105.04 × 100)
= Rs. 10504