CUET Preparation Today
If the present value of a perpetuity of ₹800 payable at the end of every six months be ₹20,000, then rate of interest is : |
4% per annum 12% per annum 10% per annum 8% per annum |
8% per annum |
The correct answer is Option (4) → 8% per annum The present value of a perpetuity, $PV=\frac{A}{r}$ $20,000=\frac{800}{r}$ $r=\frac{800}{20,000}=4\%$ Annual Rate = $4\%×=8\%$ |
