Which is better investment, 12% stock at par with an income tax at the rate of 5

MCQ Practice

Which is better investment, 12% stock at par with an income tax at the rate of 5 paise per rupee or $$14frac{2}{7}% $$ stock at 120 free from income tax ?

Subject: MathematicsTopic: Stocks And Shares

12% stock

$$14frac{2}{7} $$% stock

Both are equally good

Cannot be compound

Correct Answer: B