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If the annual net income from a commercial property is Rs 22,000/- and the interest rate is 8%, then the capitalized value in rupees of the property in perpetuity is _____________
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- 275000 to 275000
- 270000 to 275000
- 175000 to 225000
- All of the above
Correct Option: A
Let the value of the property is y
According to question, 8% of y is 22000
y × | = 22000 | |
100 |
= 22000 | ||
100 |
y = 275000