Question

A landlord bought a flat for 8,00,000. He wants to earn a 9% annual return on his investment after paying 2,000 per month for maintenance. What should be the monthly rent he charges?

• A. ₹7000
• B. ₹7500
• C. ₹8000
• D. ₹8500

Answer 1

Answer:

C. ₹8000

Cost of flat = ₹8,00,000

Desired annual return = 9% of 8,00,000
$0.09 \times 800000 = 72,000$
Maintenance per year = ₹2,000 × 12 = ₹24,000

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Let monthly rent = ₹x

Annual rent = (12x)

Net annual income after maintenance:

12x - 24,000

This should equal desired return:

12x - 24,000 = 72,000

12x = 96,000

x = 8,000