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CUET · MATHS · PYQ PAPER 2023

The present value of a perpetuity of ₹2,500 payable at the end of each year, if money is worth 10% compounded annually, is:

  1. A ₹25,000
  2. B ₹50,000
  3. C ₹1,00,000
  4. D ₹2,50,000
Verified Solution

Answer & Solution

Correct Answer

(A) ₹25,000

Step-by-step Solution

Detailed explanation

\( PV = \frac{A}{r} \) \( PV = \frac{2500}{0.10} \) \( PV = ₹25,000 \)
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