The present value of a perpetuity of ₹800 payable at the end of each quarter, if money is worth 8% per annum.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹40,000
The present value of a perpetuity,
$PV=\frac{A}{r}=\frac{800}{\frac{2}{100}}=40,000$