To determine the future capital gain/loss incurred after modelling the selling price of the apartment, we need to calculate the future value of the apartment after 20 years of conservative 7% annual appreciation.

Using the future value formula: FV = PV x (1 + r)^n, where PV is the present value, r is the annual interest rate, and n is the number of years, we get:

FV = ₹12.5 million x (1 + 0.07)^20 FV = ₹57,090,000

Therefore, the future selling price of the apartment after 20 years is ₹57,090,000.

To determine the capital gain/loss, we need to subtract the initial purchase price of ₹12.5 million from the future selling price of ₹57,090,000:

Capital gain/loss = ₹57,090,000 - ₹12.5 million Capital gain/loss = ₹44,590,000

Therefore, the capital gain after 20 years is ₹44,590,000.

To calculate the present value of the capital gain/loss, we need to discount it back to the present using the present value formula: PV = FV / (1 + r)^n, where r is the discount rate and n is the number of years.

Assuming a discount rate of 7%, we get:

PV = ₹44,590,000 / (1 + 0.07)^20 PV = ₹10,076,000

Therefore, the present value of the capital gain after 20 years is ₹10,076,000.