Anmol gets a rent of Rs 100 each month for the next infinite years. Assuming rate at 12%. Find the present value.
Question
Solution 1
To calculate the present value of an infinite series of future payments (also known as a perpetuity), we can use the formula:
PV = PMT / r
where:
- PV is the present value we want to find,
- PMT is the amount of each payment, and
- r is the interest rate per period.
In this case, Anmol receives R Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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