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CUET · MATHS · PYQ PAPER 2023

Match List I with List II
LIst - IList - II
(A) The present value of an immediate perpetuity of ₹R payable at end of any year forever at rate of i per period is:(I) \(\frac{R}{i}(1+i)^m\)
(B) Present value of deferred perpetuity is(II) \(\frac{A i}{(1+i)^n-1}\)
(C) Periodic payment R in a sinking fund is given by formula (for Amount A)(III) \(A(1+i)^{-n}\)
(D) The present value of redemption price A of a bond is given by(IV) \(\frac{R}{i}\)

  1. A A - IV, В - І, С - II, D - III
  2. B А - І, В - II, С - III, D - IV
  3. C А - ІІ, В - III, C - IV, D - I
  4. D А - III, B - IV, C - I, D - II
Verified Solution

Answer & Solution

Correct Answer

(A) A - IV, В - І, С - II, D - III

Step-by-step Solution

Detailed explanation

(A) The present value of an immediate perpetuity of ₹R payable at end of any year forever at rate of i per period is: \( \frac{R}{i} \) (IV) (B) Present value of deferred perpetuity is: \( \frac{R}{i}(1+i)^m \) (I) (C) Periodic payment R in a sinking fund is given by formula…