The present value of a perpetuity of ₹2,500 payable at the end of each year, if money is worth 10% compounded annually is : |
₹25,000 ₹50,000 ₹1,00,000 ₹2,50,000 |
₹25,000 |
The correct answer is Option (1) → ₹25,000 The present value of phenomenon is, $PV=\frac{c}{r}=\frac{2,500}{0.10}=25,000$ |