CUET Preparation Today
At 8% converted quarterly, the present value of perpetuity of ₹900 payable at the end of each quarter is : |
₹30,000 ₹40,000 ₹45,000 ₹50,000 |
₹45,000 |
The correct answer is Option (3) → ₹45,000 The present value of a perpetuity is, $PV=\frac{A}{r}$ and, Quarterly interest rate = $\frac{8\%}{4}=\frac{8}{4}=2\%$ $⇒PV=\frac{900}{0.02}=₹45,000$ |
