CUET Preparation Today
The present value of perpetuity income of ₹x at the end of each 6 months is ₹40,000. If money is worth 6% compounded semi annually, then x is : |
₹1200 ₹1400 ₹2400 ₹900 |
₹1200 |
The correct answer is Option (1) → ₹1200 The present value of a perpetuity is, $PV=\frac{x}{r}$ $⇒40,000=\frac{x}{0.03}$ $⇒x=1,200$ |
