CUET · MATHS · PYQ PAPER 2025

Rs. 2,50,000 cash is equivalent to a perpetuity of Rs. 7500 payable at the end of each quarter.
Then the rate of interest is

A 4% p.a
B 6% p.a
C 3% p.a
D 12% p.a

Verified Solution

Answer & Solution

Correct Answer

(D) 12% p.a

Step-by-step Solution

Detailed explanation

\( PV = \frac{A}{r} \) \( 250000 = \frac{7500}{r} \) \( r = \frac{7500}{250000} = 0.03 \text{ per quarter} \) \( \text{Annual rate} = 0.03 \times 4 = 0.12 = 12\% \text{ p.a.} \)

Apply the relevant identity from the chapter and substitute the values established in the previous step, keeping the original constraint in view.

Use the simplified expression to isolate the unknown, then plug the result back into the question setup to confirm the working is internally consistent.

Cross-check against a boundary or limiting case. Both the dimensional balance and the qualitative behaviour at the extreme should agree with the candidate answer.

Combine the steps above to identify the correct option. The remaining choices each fail at least one of the consistency, dimensional, or boundary checks.

Same subject

Explore more questions on app

From CUET

Explore more questions on app

Rs. 2,50,000 cash is equivalent to a perpetuity of Rs. 7500 payable at the end of each quarter.Then the rate of interest is

Step-by-step Solution

Rs. 2,50,000 cash is equivalent to a perpetuity of Rs. 7500 payable at the end of each quarter.
Then the rate of interest is