SSC JE Civil Engineering 23-Mar-2021 Shift 2 Paper

Question : 116 of 200

Marks: +1, -0

A building fetches a rent of Rs. 10,000 annually. After repairing, it will last for 2 years. If the rate of interest on capital is 5% and the co-efficient of annual sinking fund is 0.05, then estimate the capitalized value of the building after 2 years.

Rs. 4,50,000
Rs. 8,50,000
Rs. 1,50,000
Rs. 1,00,000

Validate

Solution:

Net annual income = 10000, i = 5% = 0.05, s = 0.05

\text "Year′s purchase" = 1/{\i+\s}

=1/{0.05+0.05}

⇒ Year's purchase = 10
V = Net annual income × Year purchase = 10,000 × 10 = 1,00,000

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