The money needed to invest now; so as to get ₹7500 at the beginning of each month forever (starting from the current month) if the money is worth 9% per annum compounded monthly is, |
₹10,05,000 ₹9,05,000 ₹10,07,500 ₹9,50,000 |
₹10,07,500 |
The correct answer is Option (3) → ₹10,07,500 The formula for the present value of a perpetuity due is, $PV=\frac{A}{r}(1+r)$ $=\frac{75000}{0.0075}×(1+0.0075)$ $=₹10,07,500$ |