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Identify the formula used for List I from List II

Match List-I with List-II

List-IList-II
(A) Present value of perpetuity payable at the end of each payment period(I) R+RiR+\dfrac{R}{i} (₹R payable at the beginning of each payment period, ii = interest per rupee per payment period)
(B) Present value of perpetuity payable at the beginning of each payment period(II) (VnV0)1/n−1\left(\dfrac{V_n}{V_0}\right)^{1/n}-1, VnV_n = Final value of investment, V0V_0 = Beginning value of the investment, nn = number of years
(C) Computation of CAGR(III) C−sn\dfrac{C-s}{n}, CC = Original cost, ss = Scrap value, nn = number of years
(D) Annual Depreciation(IV) Ri\dfrac{R}{i} (₹R payable at the end of each period, ii = interest per rupee per payment period)

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

An ordinary perpetuity is worth Ri\dfrac{R}{i}; a perpetuity due adds one immediate payment, giving R+RiR+\dfrac{R}{i}. CAGR uses the ratio of final to initial value raised to 1n\dfrac1n, minus 1. Straight-line annual depreciation is C−sn\dfrac{C-s}{n}.

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