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A sum of Rs 60,000 invested at r percent compounded quarterly will provide payment at rupees 600 each at the end of every three months , then the value of r is :

Solution

✅ Correct Option: 2

For perpetuity: P=RiP = \frac{R}{i} where ii is rate per period.

60000=600i⇒i=60060000=1100=1%60000 = \frac{600}{i} \Rightarrow i = \frac{600}{60000} = \frac{1}{100} = 1\% per quarter.

Annual rate r=4×1%=4%r = 4 \times 1\% = 4\%.

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