A property fetches a net income of Rs90000 deducting all out

A property fetches a net income of Rs.900.00 deducting all outgoings. Workout the capitalized value of the property if the rate of interest is 6% per annum.  ( Answer in detail for 10 marks)

Solution

Solution:-

Given

Net income = Rs. 900

Rate of interest = 6 % per annum

Years purchase = 100/6 = 16.67

Capitalized value of the property = Net income * Years purchase

Capitalized value of the property = 900 * 16.67

Capitalized vaue of the property = 15003 Rs. Answer