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CUET · MATHS · PYQ PAPER 2025

At what rate of interest will the present value of a perpetuity of Rs. 1000 payable at the end of every six months be Rs. 40000 ?

  1. A \(10\%\)
  2. B \(2.5\%\)
  3. C \(3.7\%\)
  4. D \(12\%\)
Verified Solution

Answer & Solution

Correct Answer

(B) \(2.5\%\)

Step-by-step Solution

Detailed explanation

\(PV = \frac{PMT}{r}\) \(40000 = \frac{1000}{r}\) \(r = \frac{1000}{40000}\) \(r = 0.025 = 2.5\%\)