Question

A man buys a land and gives for it 20 times the annual rent find the rate of interest he gets for his money.

Answer 1

Answer:

If a man buys land for Rs ( 100*20 ) = Rs 2000 and gives it for rent at a price of 100 per month then the earning is a certain percentage of the total amount he invested in purchasing the land. If he buys in Rs 2000/- and earns an amount of Rs 100 per month, then he earns around Rs 1200, annually from his land.

Explanation:

Hence in order to calculate the percentage of rate of return on the investment of the landowner, we need to divide (1200 / 2000 ) * 100 = 60 %. Therefore the amount he is earning from his investment is, 60% per annum.