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CUET · MATHS · PYQ PAPER 2025

What sum of money is needed to invest now so as to get Rs. 5000 at the beginning of every month forever, if the money is worth 6% per annum compounded monthly?

  1. A Rs. 10, 05, 000
  2. B Rs. 15,00,000
  3. C Rs. 10, 50,000
  4. D Rs. 12,50,000
Verified Solution

Answer & Solution

Correct Answer

(A) Rs. 10, 05, 000

Step-by-step Solution

Detailed explanation

\( i = \frac{0.06}{12} = 0.005 \) \( PV = PMT + \frac{PMT}{i} \) \( PV = 5000 + \frac{5000}{0.005} \) \( PV = 5000 + 1000000 \) \( PV = 1005000 \)
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