An investor purchases a perpetuity that pays ₹12,000 per year forever. If the required rate of return is 8% per annum, the present value of the…

CA Foundation · Quantitative Aptitude · MTP · September 2026
An investor purchases a perpetuity that pays ₹12,000 per year forever. If the required rate of return is 8% per annum, the present value of the perpetuity is:
(A) A. ₹96,000
(B) B. ₹1,20,000
(C) C. ₹1,50,000
(D) D. ₹1,80,000

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. ₹1,50,000

Topics: Part-A: Business Mathematics

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