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. 20000?
- A \(10 \%\)
- B \(12 \%\)
- C \(8 \%\)
- D \(11 \%\)
Answer & Solution
Correct Answer
(A) \(10 \%\)
Step-by-step Solution
Detailed explanation
\(r_{semi} = \frac{PMT}{PV}\) \(r_{semi} = \frac{1000}{20000} = 0.05\) \(r_{annual} = r_{semi} \times 2 = 0.05 \times 2 = 0.10 = 10\%\)
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