What sum of money invested now child establish a scholarship of Rs 5000 which is to be awarded at the end of every year forever, if money is worth 8% per annum.
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : ₹62500
Given $R= ₹5000$
$r= 8$% p.a
$i=\frac{8}{100}=0.08$
So, $P=\frac{R}{i}=\frac{5000}{0.08}$
$=₹62500$