What sum of money should be invested now so as to get ₹7,500 at the beginning of every month forever, if the money is worth 7.5% per annum compounded monthly ?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹12,07,500
The present value (PV) is,
$PV=\frac{A}{r}×(1+r)$
$=\frac{7500}{0.00625}×(1+0.00625)$
$=₹12,07,500$