Question

Mr. Vellu buys a generator for rs 100000 and rents if. He puts 12.5% of each months rent aside for upkeep and repairs, pays rs 325 per year as taxes and realizes 5.5% annually on his investment. Find the monthly rent.

Answer 1

Answer:

Step-by-step explanation:

Given  

Mr. Vellu buys a generator for rs 100000 and rents if. He puts 12.5% of each months rent aside for upkeep and repairs, pays rs 325 per year as taxes and realizes 5.5% annually on his investment. Find the monthly rent

Let the monthly rent be Rs a. We have

5.5 % of 100000 = 12(a – 12.5% of a) – 325

5500 = 12(100 a – 12.5 a / 100) – 325

5500 = 3(87.5 a) / 25 – 325

5500 + 325 = 262.5 / 25 a

 5825 x 25 = 262.5 a

 a = 145625 / 262.5

 a = 554.76

So the monthly rent will be Rs 554.76