b) Mr Ismi wishes to sell his freehold house in Johor Bharu. The house was let at market rent of RM320 per month net. Advise him on the minimum price he should offer if the investment return of property is at 6% per annum.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 23P
icon
Related questions
Question

Do b only

Without using Parry's Valuation Tables, solve the following problems by showing suitable calculations.
a)
i) If Amount of RM 1 per annum for 7 years @ 6.6 % is 2.6215, calculate the Annual Sinking Fund for 7
years @6.6%.
b)
ii) If Annual Sinking Fund for 5 years @ 5% is 0.1800, calculate the Years Purchased 5 years @ 5%.
Mr Ismi wishes to sell his freehold house in Johor Bharu. The house was let at market rent of RM320 per
month net. Advise him on the minimum price he should offer if the investment return of property is at
6% per annum.
Transcribed Image Text:Without using Parry's Valuation Tables, solve the following problems by showing suitable calculations. a) i) If Amount of RM 1 per annum for 7 years @ 6.6 % is 2.6215, calculate the Annual Sinking Fund for 7 years @6.6%. b) ii) If Annual Sinking Fund for 5 years @ 5% is 0.1800, calculate the Years Purchased 5 years @ 5%. Mr Ismi wishes to sell his freehold house in Johor Bharu. The house was let at market rent of RM320 per month net. Advise him on the minimum price he should offer if the investment return of property is at 6% per annum.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Exempt Organizations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L