1.

Find the present value of perpetuity of ₹600 at end of each quarter if money is worth 8% compounded quarterly.

Answer»

R = ₹600

\(i=\frac{0.08}{4}\) = 0.02

Present value of perpetuity = P = \(\frac{R}{i}\)

⟹ P = \(\frac{600}{0.02}\) = ₹30,000



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