CUET Preparation Today
The present value of a perpetuity of ₹6,240 payable at the beginning of each year, if money is worth 10% effective, is: |
₹66,640 ₹68,640 ₹69,640 ₹67,640 |
₹68,640 |
The correct answer is Option (2) → ₹68,640 To calculate a present value of a perpetuity, $PV=\frac{C}{r}×(1+r)$ $=\frac{6240}{0.10}×(1+0.10)=68,640$ |
