A property bought for ₹12,00,000 must give a 12% annual return after monthly maintenance of ₹3,000. What should be the monthly rent?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹15,000.
Cost of property = ₹12,00,000
Required annual return = 12% of 12,00,000 = 12/100 × 12,00,000 = ₹1,44,000
Annual maintenance = 3,000 × 12 = ₹36,000
Total annual rent required = 1,44,000 + 36,000 = ₹1,80,000
Monthly rent = 1,80,000 ÷ 12 = ₹15,000