CUET Preparation Today
The rate per annum compounded semi-annually so that the present value of perpetuity of ₹4,000 payable at the beginning of each 6 month be ₹54,000 is : |
8% 7.4% 16% 14.8% |
16% |
The correct answer is Option (3) → 16% The formula for present value annuity, $PV=\frac{A}{i}(1+i)$ $⇒54,000=\frac{4,000}{i}(1+i)$ $⇒12.5i=1⇒i=0.08$ ∴ Annual rate = $2×i=16\%$ |
