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Which of the following is the present values of a perpetuity of ₹5,250 at the beginning of each year, if money is worth 7% effective ? |
₹85,000 ₹82,250 ₹80,250 ₹85,250 |
₹80,250 |
The correct answer is Option (3) → ₹80,250 The present value of a perpetuity is, $PV=\frac{A}{r}×(1+r)$ $=\frac{5250}{0.07}(1+0.07)=₹80,250$ |
