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Sam buys a house for Rs. 23000. He pays a house tax of Rs. 500 a year and has to carry out annual repairs of 1.5% on the purchase price of the house. At what monthly rent must he lease the house, so as to get a return of 8% per annum on the purchase price?
A Rs. 223.75
b Rs. 215.50
c Rs. 231.50
DRs. 227.25?
A Rs. 223.75
b Rs. 215.50
c Rs. 231.50
DRs. 227.25?
Most Upvoted Answer
Sam buys a house for Rs. 23000. He pays a house tax of Rs. 500 a year ...
Calculating Monthly Rent
1. Annual Expenses:
- House tax: Rs. 500
- Annual repairs: 1.5% of purchase price = 1.5% of Rs. 23000 = Rs. 345
2. Total Annual Expenses:
Total annual expenses = House tax + Annual repairs
Total annual expenses = Rs. 500 + Rs. 345
Total annual expenses = Rs. 845
3. Desired Annual Return:
Desired annual return = 8% of purchase price = 8% of Rs. 23000 = Rs. 1840
4. Calculation for Monthly Rent:
Monthly rent = (Total annual expenses + Desired annual return) / 12
Monthly rent = (Rs. 845 + Rs. 1840) / 12
Monthly rent = Rs. 2685 / 12
Monthly rent = Rs. 223.75
Therefore, Sam must lease the house for Rs. 223.75 per month in order to get a return of 8% per annum on the purchase price. Hence, the correct answer is Rs. 223.75.
1. Annual Expenses:
- House tax: Rs. 500
- Annual repairs: 1.5% of purchase price = 1.5% of Rs. 23000 = Rs. 345
2. Total Annual Expenses:
Total annual expenses = House tax + Annual repairs
Total annual expenses = Rs. 500 + Rs. 345
Total annual expenses = Rs. 845
3. Desired Annual Return:
Desired annual return = 8% of purchase price = 8% of Rs. 23000 = Rs. 1840
4. Calculation for Monthly Rent:
Monthly rent = (Total annual expenses + Desired annual return) / 12
Monthly rent = (Rs. 845 + Rs. 1840) / 12
Monthly rent = Rs. 2685 / 12
Monthly rent = Rs. 223.75
Therefore, Sam must lease the house for Rs. 223.75 per month in order to get a return of 8% per annum on the purchase price. Hence, the correct answer is Rs. 223.75.
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Sam buys a house for Rs. 23000. He pays a house tax of Rs. 500 a year and has to carry out annual repairs of 1.5% on the purchase price of the house. At what monthly rent must he lease the house, so as to get a return of 8% per annum on the purchase price?A Rs. 223.75b Rs. 215.50c Rs. 231.50DRs. 227.25?
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Sam buys a house for Rs. 23000. He pays a house tax of Rs. 500 a year and has to carry out annual repairs of 1.5% on the purchase price of the house. At what monthly rent must he lease the house, so as to get a return of 8% per annum on the purchase price?A Rs. 223.75b Rs. 215.50c Rs. 231.50DRs. 227.25? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Sam buys a house for Rs. 23000. He pays a house tax of Rs. 500 a year and has to carry out annual repairs of 1.5% on the purchase price of the house. At what monthly rent must he lease the house, so as to get a return of 8% per annum on the purchase price?A Rs. 223.75b Rs. 215.50c Rs. 231.50DRs. 227.25? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sam buys a house for Rs. 23000. He pays a house tax of Rs. 500 a year and has to carry out annual repairs of 1.5% on the purchase price of the house. At what monthly rent must he lease the house, so as to get a return of 8% per annum on the purchase price?A Rs. 223.75b Rs. 215.50c Rs. 231.50DRs. 227.25?.
Sam buys a house for Rs. 23000. He pays a house tax of Rs. 500 a year and has to carry out annual repairs of 1.5% on the purchase price of the house. At what monthly rent must he lease the house, so as to get a return of 8% per annum on the purchase price?A Rs. 223.75b Rs. 215.50c Rs. 231.50DRs. 227.25? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Sam buys a house for Rs. 23000. He pays a house tax of Rs. 500 a year and has to carry out annual repairs of 1.5% on the purchase price of the house. At what monthly rent must he lease the house, so as to get a return of 8% per annum on the purchase price?A Rs. 223.75b Rs. 215.50c Rs. 231.50DRs. 227.25? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sam buys a house for Rs. 23000. He pays a house tax of Rs. 500 a year and has to carry out annual repairs of 1.5% on the purchase price of the house. At what monthly rent must he lease the house, so as to get a return of 8% per annum on the purchase price?A Rs. 223.75b Rs. 215.50c Rs. 231.50DRs. 227.25?.
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Sam buys a house for Rs. 23000. He pays a house tax of Rs. 500 a year and has to carry out annual repairs of 1.5% on the purchase price of the house. At what monthly rent must he lease the house, so as to get a return of 8% per annum on the purchase price?A Rs. 223.75b Rs. 215.50c Rs. 231.50DRs. 227.25?, a detailed solution for Sam buys a house for Rs. 23000. He pays a house tax of Rs. 500 a year and has to carry out annual repairs of 1.5% on the purchase price of the house. At what monthly rent must he lease the house, so as to get a return of 8% per annum on the purchase price?A Rs. 223.75b Rs. 215.50c Rs. 231.50DRs. 227.25? has been provided alongside types of Sam buys a house for Rs. 23000. He pays a house tax of Rs. 500 a year and has to carry out annual repairs of 1.5% on the purchase price of the house. At what monthly rent must he lease the house, so as to get a return of 8% per annum on the purchase price?A Rs. 223.75b Rs. 215.50c Rs. 231.50DRs. 227.25? theory, EduRev gives you an
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