A landlord bought a property for ₹12,00,000. He wants to earn a 10% annual return on his investment after paying ₹2,500 per month for maintenance. What should be the monthly rent he charges?

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Accepted Answer

1. Cost and target return: 10% of ₹1,200,000 is $1,200,000	imes0.10=120,000$ per year.

2. Annual maintenance: ₹2,500 per month → $2,500	imes12=30,000$ per year.

3. Let monthly rent be $R$. Net annual income = $12R-30{,}000$. Set this equal to the target: $12R-30{,}000=120{,}000$.

4. Solve: $12R=150{,}000\Rightarrow R=12{,}500$. So monthly rent = ₹12,500 (option **c**).

FINAL_ANSWER: c

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