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 · PYQS · January 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. ₹ 2,700
(B) B. ₹ 2,500
(C) C. ₹ 3,000
(D) D. ₹ 2,000

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. ₹ 2,700

Topics: Part-A: Business Mathematics

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