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Solve pls

Maths & Stats

. A stock pays annually an amount of Rs. 10 from 6th year onwards . What is the present value of perpetuity, if the rate of return is 20% (a) 20.1 (b) 19.1 (c) 21.1 (d) 22.1

Vamsi Krishna Vk

CA Inter

★ 4K+

08-Dec-23 17:17

626

Answers (1)

First Present value i.e. A÷i÷N= 10÷0.20 equal to 50 (pv) after that Put the formula A= p(1+i÷N)^t We have to find p Here A =50 ,i=0.20,t=5y Time is Five years because We have to find on the end of five year and starting of sixth year . Hope it will help you.