Engineering Board Exam Reviewer · Perpetuity and Capitalized Cost · easy

What annual payment can a perpetuity of P200,000 principal generate at 6% annual interest?

  1. P12,000
  2. P10,000
  3. P14,000
  4. P15,000

Answer

A. P12,000

Solution

A=Pi=200000(0.06)=P12,000.

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