CUET Preparation Today
The present value of a perpetuity of ₹1200 payable at the beginning of each year, if money is worth 5% per annum is : |
₹25,500 ₹24,000 ₹24,200 ₹25,200 |
₹25,200 |
The correct answer is Option (4) → ₹25,200 The present value (PV) of a perpetuity, $PV=\frac{A}{r}×(1+r)$ $=\frac{1200}{0.05}×(1+0.05)$ $=₹25,200$ |
