Question

1. The annual assessed value of a house which is lies within the limits of a certain municipal council which charges12% of annual rates is Rs. 18 000. The house owner is rented it for monthly rental of Rs. 10 000. What is the annual rates that should be paid for the house?
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Answer 1

Answer:

8000

Step-by-step explanation:

Answer 2

Given:

As per the annual value authorised by municipal council = 12 % of annual rates = 18000

Actually monthly rental amount = 10,000

To find:

Yearly rental amount = 10,000× 12 = 1,20,000

As per municipal council annual amount

= 18000/12%

=1,50,000

Annual rates that should be paid for the house

= Actual rent or annual amount authorised by municipal whichever is lower

=1,20,000 or 1,50,000 whichever is less

= 1,20,000

Solution:

Annual rates that should be paid for the house is 1,20,000.