The present value of a perpetuity of ₹2,500 payable at the end of each year, if money is worth 10% compounded annually is :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹25,000
The present value of phenomenon is,
$PV=\frac{c}{r}=\frac{2,500}{0.10}=25,000$