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 ?
- A \(10\%\)
- B \(2.5\%\)
- C \(3.7\%\)
- D \(12\%\)
Answer & Solution
Correct Answer
(B) \(2.5\%\)
Step-by-step Solution
Detailed explanation
\(PV = \frac{PMT}{r}\) \(40000 = \frac{1000}{r}\) \(r = \frac{1000}{40000}\) \(r = 0.025 = 2.5\%\)
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