IndigoLearn

Forums

Back

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

2K+

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.

Aman Dwivedi

CA Foundation

★ 5K+

09-Dec-23 09:45

Your Reply

IndigoLearn

We have been revolutionising learning paths for students of CA, CFA, CMA, US CMA, and ACCA since 2017 . “Learn Like Never Before” & ‘ Students-first ’ are the cornerstones of our approach. We take immense pride in having enabled 13,000 + students succeed in some of the toughest examinations in the world & are grateful to them for the love and respect they have showered us with, over the years.