alleryStart learning →A perpetuity pays Rs 500 every year. At a 10% rate, its present value is?
ARs 4,500
BRs 5,000
CRs 5,500
DRs 50,000
Answer & Solution
Correct answer: B. Rs 5,000
A perpetuity is worth payment divided by rate: 500 / 0.10 = Rs 5,000.
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