The annuity, whose periodic payment is ₹ R tor infinite periods interest rate being r% per period $\begin{pmatrix}i=\frac{r}{100}\end{pmatrix}$ and periodic payment is made at end of each payment period is given by the equation:
Answer & explanation
Correct answer: option 2
$P=\frac{R}{i}[1-(1+i)^{-n}]$
∵ n = ∞
$∴ (1+i)^∞=0$
$∴P=\frac{R}{i}$