CUET Preparation Today
Find the present value of a perpetuity of Rs 500 payable at the end of each quarter, if money is worth 8% per annum. |
₹24000 ₹25000 ₹26000 ₹27000 |
₹25000 |
The correct answer is option (2) :₹25000 Given $R= ₹500,$ $r=\frac{8}{4}\text{%}= 2\text{%}$ per quarter $i=\frac{2}{100}=0.02$ Present value =$P=\frac{R}{i}$ $=\frac{500}{0.02}$ $=₹25000$ |
