Correct Answer - Option 3 : 10,000
Explanation:
Capitalised value:
Capitalised value is the amount of money whose annual interest at the highest prevailing rate of interest will be equal to the net income from the property.
In mathematical form it is represented as:
Capitalised value = Net annual income × Year’s Purchase
Year’s Purchase = \(\frac{{100}}{i}\)
i = rate of interest = 10%
Year’s Purchase = \(\frac{{100}}{{10}} = 10\)
Net annual income = Rs. 1,000
Capitalised value = 1,000 × 10 = Rs. 10,000