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,
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹10,07,500
The formula for the present value of a perpetuity due is,
$PV=\frac{A}{r}(1+r)$
$=\frac{75000}{0.0075}×(1+0.0075)$
$=₹10,07,500$