If the Cash equivalent of a perpetuity of ₹450 payable at the end of each quarter is ₹20,000, then the rate of interest convertible quarterly is:

9%

The correct answer is Option (4) → 9%

$\text{Present value of perpetuity} = \frac{R}{i}$

$20000 = \frac{450}{i}$

$i = \frac{450}{20000} = 0.0225$

$\text{Quarterly rate} = 2.25\%$

$\text{Nominal rate convertible quarterly} = 4 \times 2.25\% = 9\%$

$\text{Rate of interest} = 9\% \text{ p.a. convertible quarterly}$