At 6% converted quaterly, the present value of perpetuity of 6,000 payable at the end of each quarter (in rupees ) is :
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 4,00,000
$\text{Present Value}=\frac{\text{Payment per period}}{\text{Periodic interest rate}}$
$\text{Quarterly Rate}=\frac{6\%}{4}=1.5\%=0.015$
$PV=\frac{6000}{0.015}=4,00,000$