An old building has been purchased by a person at a cost of Rs.30000/- excluding the cost of the land. Calculate the amount of annual sinking fund at 4% interest assuming the future lie of the building as 20 years and the scrap value of the building as 10% of the cost of purchase.
(a) Rs.979.7
(b) Rs.4387.20
(c) Rs.107.20
(d) Rs.907.20
I had been asked this question in an interview for internship.
This key question is from Values, Tax, Funds & Rents etc in section Valuation, Reports Technical and Design Data of Civil Engineering Drawing