SSC JE Civil Engineering 30-Oct-2020 Shift 2 Paper

Question : 174 of 200

Marks: +1, -0

A property fetches a net annual income of Rs. 3000/- deducting all outgoings. Calculate the capitalised value of the property if the rate of interest is 9% per annum.

Rs. 33,333.34
Rs. 45,648.67
Rs. 59,671.58
Rs. 3,240.00

Validate

Solution:

Concept:
Capitalised value is the amount of a money whose annual interest at the highest prevailing rate of interest will be equal to the net income from the property.
In mathematical form it is represented as:
Capitalised value = Net annual income × Year’s Purchase
Year’s Purchase =

100/\i

i = rate of interest = 9%
Year’s Purchase

= 100/9=11.11

Net annual income = Rs. 3000
∴ Capitalised value

= 3000 × 100/9 = \Rs. 33,333.34

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