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The present value of a perpetuity of ₹ 900 payable at the end of each year, if money is worth 6 % per annum, is:

Solution

✅ Correct Option: 1

For a perpetuity the present value is Ri=9000.06=₹15000\frac{R}{i} = \frac{900}{0.06} = ₹15000.

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