Accountancy, asked by lalitharamachandra12, 3 months ago

If an investor expects a perpetual sum of Rs. 500 annually from his investment, what is the present
value of the perpetuity, if the time preference rate is 20%?

Answers

Answered by CAManishK

7

Answer:

500 / 20% = 2,500

Explanation:

Investment of 2,500 will earn 500 annually at 20% p.a. return rate.

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