CUET Preparation Today
The present value of a perpetuity of ₹1,500 payable at the beginning of each year, if money is worth 6% per annum is : |
₹26,000 ₹25,750 ₹26,500 ₹24,500 |
₹26,500 |
The correct answer is Option (3) → ₹26,500 To calculate the present value of a perpetuity, $PV=\frac{C}{r}×(1+r)$ $=\frac{1,500}{0.06}×(1+0.06)$ $=25,000×1.06$ $=26,500$ |
