A newly constructed building cost Rs.68 lakhs on a plot of valuation of Rs.85 lakhs. In this plot, flat of 120m² each are constructed. Fix the monthly rent per flat from the following data:

a) Net return on Land and building = 7.5%

b) Life of Building =60 years

c) Interest Rate on sinking fund = 6%

d) Salvage value = 10% of the cost of the building

e) Repairs and Maintenance = 2.5% of the building cost

f) Taxes and other expenses = 20% of the gross rent

Gross Rent = Net Return + sinking fund + Annual Maintenance + other expenses

X =1147500 +11444.4 + 170000 + 20% X

X = Rs. 1661180.5

Gross Rent / month $= \frac{1661180.5}{12} = Rs.138431.70$

Gross Rent / month/ Flat $= \frac{138431.70}{10} = Rs. 13843.17$