Skip to main contentSkip to solution

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 i=0.03i = 0.03. For a perpetuity, PV=xiPV = \frac{x}{i}, so x=400000×0.03=12000x = 400000 \times 0.03 = 12000.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question