Assuming that the discount rate is 12% per annum, how much would you pay to receive ₹100, growing at 8% annually forever?

CA Foundation · Quantitative Aptitude · MTP · April 2025
Assuming that the discount rate is 12% per annum, how much would you pay to receive ₹100, growing at 8% annually forever?
(A) A. ₹2,500
(B) B. ₹2,700
(C) C. ₹3,000
(D) D. ₹2,000

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. ₹2,500

Topics: Part-A: Business Mathematics

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