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CUET · MATHS · PYQ PAPER 2025

The present value of a sequence of payments of Rs. \(2000\) made at the end of every \(6\) months and continuing forever, if money is worth \(8 \%\) per annum compounded semi-annually, is:

  1. A Rs. \(25000\)
  2. B Rs \(50000\)
  3. C Rs. \(40000\)
  4. D Rs. \(5000\)
Verified Solution

Answer & Solution

Correct Answer

(B) Rs \(50000\)

Step-by-step Solution

Detailed explanation

Periodic interest rate \((i) = \frac{0.08}{2} = 0.04\) Present Value \((PV) = \frac{A}{i} = \frac{2000}{0.04} = 50000\)
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