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CUET · MATHS · PYQ PAPER 2025

At what rate will the present value of a perpetuity of Rs.1000 payable at the end of each quarter be Rs.50000?

  1. A 5% p.a
  2. B 8% p.a
  3. C 2% p.a
  4. D 4% p.a
Verified Solution

Answer & Solution

Correct Answer

(B) 8% p.a

Step-by-step Solution

Detailed explanation

\( PV = \frac{PMT}{i} \) \( 50000 = \frac{1000}{i} \) \( i = \frac{1000}{50000} = 0.02 \) (quarterly) \( r = 0.02 \times 4 = 0.08 = 8\% \) p.a.
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