CUET Preparation Today
At 4% converted half yearly,the present value of a perpetuity of ₹800 payable at the end of each half year is : |
₹45,000 ₹40,000 ₹55,000 ₹60,000 |
₹40,000 |
The correct answer is Option (2) → ₹40,000 The present value of a perpetuity, $PV=\frac{\text{Payment Period}}{\text{Rate per period (semi-annually)}}$ $=\frac{800}{0.02}=₹40,000$ |
