51. A residential building fetches a monthly gross rent of Rs. 12,000. The annual
out- goings in the form of taxes and other contingencies is Rs. 12,000. The cost of land
comes to Rs. 6,00,000. Estimate the total value of property (in Rs.) on a yearly basis. Assume the rate of interest as 6% per annum.

Correct option is D

Given that,
monthly rent = 12000
Yearly or annual gross rent (Ag) = 12 × 12000
= 144000
Annual outgoing (O) = 12000
Land cost = 600, 000,
Rate of interest = 6%.
We know, then,
Net income = gross rent – outgoing Net income
= 144000 – 12000
= 132000 Rs.
Then, value of property =
Capital value + Land cost
Capital value = Net income × year's purchase

= 2200000Rs.
Value of property = 2200, 000 + 600,000
= 2800,000 Rs. ≃ 2800,440 Rs.