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?
- A 5% p.a
- B 8% p.a
- C 2% p.a
- D 4% p.a
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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