CUET Preparation Today
The rate of interest at which the present value of a perpetuity of ₹2,000 payable at the end of each year will be ₹10,000 is : |
20% 10% 5% 25% |
20% |
The correct answer is Option (1) → 20% The formula for present value annuity, $PV=\frac{A}{r}$ $10,000=\frac{2,000}{r}$ $r=\frac{2,000}{10,000}=0.2=20\%$ |
