Match the LIST-I with LIST-II
LIST-I LIST-II A. The present value of a perpetuity of ₹3120 payable at the beginning of each year, if money is worth 6% effective. I. ₹2,00,000 B. The present value of a perpetuity of ₹5,000 payable at the end of each year, if money is worth 5% compounded annually II. ₹1,50,000 C. The present value of a sequence of payments of ₹3,000 payable at the end of each 6 months and continuing forever, if money is worth 4% compounded semi-annually. III. ₹1,00,000 D. The present value of a perpetuity of ₹3,000 payable at the end of each quarter, if money is worth 6% compounded quarterly IV. ₹55,120
Choose the correct answer from the options given below:
Match the LIST-I with LIST-II
| LIST-I | LIST-II |
|---|---|
| A. The present value of a perpetuity of ₹3120 payable at the beginning of each year, if money is worth 6% effective. | I. ₹2,00,000 |
| B. The present value of a perpetuity of ₹5,000 payable at the end of each year, if money is worth 5% compounded annually | II. ₹1,50,000 |
| C. The present value of a sequence of payments of ₹3,000 payable at the end of each 6 months and continuing forever, if money is worth 4% compounded semi-annually. | III. ₹1,00,000 |
| D. The present value of a perpetuity of ₹3,000 payable at the end of each quarter, if money is worth 6% compounded quarterly | IV. ₹55,120 |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 3
A perpetuity paid at period end has present value . A is paid at the beginning, so its value is . B gives , C gives , and D gives .
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