The present value of a perpetuity of Rs. 9000 payable at the end of each year, if money is worth 6% compounded annually is
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 1,50,000
For a perpetuity of R payable at the end of each period, with interest rate i per period, the present value is
\( \displaystyle PV=\frac{R}{i} \)
Here R = Rs. 9000 and i = 0.06:
\( \displaystyle PV=\frac{9000}{0.06}=\text{Rs. }1{,}50{,}000 \)
CBSE Applied Mathematics (Class XII):
Perpetuity
