A businessman buys a house for Rs. 9.0 lakhs. He puts the house on rent and keeps 15 percent of each month's rent separately for repairs. After paying Rs. 2106 as annual taxes on the rent, he realizes 10 percent annually on his investment. Find the monthly rent of the house.
ARs. 10,000
BRs. 9,080
CRs. 9,030 ✓ Correct
DRs. 9,500
Correct answer: (C) Rs. 9,030
Explanation
The monthly rent is Rs 9030.
Required annual return = 10% of 900000 = 90000.
Let monthly rent = R, so annual rent = 12R.
15% is kept for repairs, leaving 85% of 12R = 10.2R.
After Rs 2106 tax: 10.2R - 2106 = 90000, so 10.2R = 92106.
R = 92106 / 10.2 = 9030.
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