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CUET · MATHS · PYQ PAPER 2025

The amount of money needed to ensure for a prize of Rs 5000 at the beginning of each year indefinitely if money is worth \(5 \%\) compounded annually is :

  1. A 1, 07, 500
  2. B 1, 10, 000
  3. C 1, 02, 500
  4. D 1, 05, 000
Verified Solution

Answer & Solution

Correct Answer

(D) 1, 05, 000

Step-by-step Solution

Detailed explanation

\( PV = P + \frac{P}{r} \) \( PV = 5000 + \frac{5000}{0.05} \) \( PV = 5000 + 100000 \) \( PV = 105000 \)