Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

The present value of a perpetuity of ₹2,500 payable at the end of each year, if money is worth 10% compounded annually is :

Options:

₹25,000

₹50,000

₹1,00,000

₹2,50,000

Correct Answer:

₹25,000

Explanation:

The correct answer is Option (1) → ₹25,000

The present value of phenomenon is,

$PV=\frac{c}{r}=\frac{2,500}{0.10}=25,000$