The present value of a perpetuity of ₹x at the end of every 6 months is ₹4,00,000. If money is worth 6% per annum compounded semi-annually, what is value of x ?
The present value of a perpetuity of ₹x at the end of every 6 months is ₹4,00,000. If money is worth 6% per annum compounded semi-annually, what is value of x ?
Solution
✅ Correct Option: 2
The semi-annual rate is . For a perpetuity, , so .
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