A landlord bought a flat for ₹8,00,000. He wants to earn a 9% annual return on his investment after paying ₹2,000 per month for maintenance. What should be the monthly rent he charges?

Correct — C. The rent must cover the return he wants plus the maintenance.

Return per year: 9% of 8,00,000 = ₹72,000
Return per month: 72,000 ÷ 12 = 6,000
Add maintenance: 6,000 + 2,000 = ₹8,000 → option (c)

Why the others are wrong

• (a)
  ₹7,000 — ₹7,000 less ₹2,000 maintenance leaves ₹5,000 a month, ₹60,000 a year, only 7.5% of ₹8,00,000, short of the 9% target.
• (b)
  ₹7,500 — ₹7,500 less maintenance leaves ₹5,500 a month, ₹66,000 a year, or 8.25%. That is still under the 9% he wants.
• (d)
  ₹8,500 — ₹8,500 less maintenance leaves ₹6,500 a month, ₹78,000 a year, or 9.75%. That overshoots the 9% he asked for.

Work out what the landlord must keep, then what he must charge.

The 9% return is on the ₹8,00,000 he paid, so it is ₹72,000 a year, or ₹6,000 a month.

Maintenance comes out of the rent every month, so the rent has to cover both: return plus cost. Put every figure in the same time unit before adding.

Key facts

• 9% of ₹8,00,000 = ₹72,000 a year.
• ₹72,000 a year = ₹6,000 a month.
• Required rent = monthly return + monthly maintenance = ₹6,000 + ₹2,000 = ₹8,000.

Common traps

• Stopping at ₹6,000, the return alone, and forgetting that maintenance comes out of the rent.
• Adding the monthly ₹2,000 to the yearly ₹72,000 before dividing by 12, which gives about ₹6,167.

No directly related past PYQ was found.