1.

A property fetches a net annual income of Rs.900 deducting all outgoings. Workout the capitalized value of the property if the rate of interest is 6% per annum.(a) Rs.67003.00(b) Rs.189003.00(c) Rs.45603.00(d) Rs.15003.00The question was posed to me in an interview for internship.This is a very interesting question from Values, Tax, Funds & Rents etc topic in division Valuation, Reports Technical and Design Data of Civil Engineering Drawing

Answer»

The CORRECT CHOICE is (a) Rs.67003.00

The EXPLANATION: Year’s PURCHASE = 100/6 = 16.67

Capitalized value of the property = Net income * Y.P. = 900*16.67 = Rs.15003.00.



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