Identify the formula used for List I from List II
Match List-I with List-II
List-I List-II (A) Present value of perpetuity payable at the end of each payment period (I) (₹R payable at the beginning of each payment period, = interest per rupee per payment period) (B) Present value of perpetuity payable at the beginning of each payment period (II) , = Final value of investment, = Beginning value of the investment, = number of years (C) Computation of CAGR (III) , = Original cost, = Scrap value, = number of years (D) Annual Depreciation (IV) (₹R payable at the end of each period, = interest per rupee per payment period)
Choose the correct answer from the options given below:
Identify the formula used for List I from List II
Match List-I with List-II
| List-I | List-II |
|---|---|
| (A) Present value of perpetuity payable at the end of each payment period | (I) (₹R payable at the beginning of each payment period, = interest per rupee per payment period) |
| (B) Present value of perpetuity payable at the beginning of each payment period | (II) , = Final value of investment, = Beginning value of the investment, = number of years |
| (C) Computation of CAGR | (III) , = Original cost, = Scrap value, = number of years |
| (D) Annual Depreciation | (IV) (₹R payable at the end of each period, = interest per rupee per payment period) |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 3
An ordinary perpetuity is worth ; a perpetuity due adds one immediate payment, giving . CAGR uses the ratio of final to initial value raised to , minus 1. Straight-line annual depreciation is .
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