just plug your numbers into the usual PV formula.
Also, I don't see where you have mentioned the discount rate.
Find the present value of a perpetuity of rs 18,000 payable at the end of 6 months, if the money is worth 8% p.a. compounded semi-annually.
3 answers
@oobleck
8% p.a. compounded semi-annually is discounted rate
8% p.a. compounded semi-annually is discounted rate
You just want the amount of money which will generate 18,000
at 4% each half year,
that is simply
PV(.04) = 18,000
PV = 450,000
that is, 4% of 450,000 = 18,000, pay it out as a scholarship or whatever,
gets you back to 450,000, another half year ---> 18,000 "perpetually" etc
at 4% each half year,
that is simply
PV(.04) = 18,000
PV = 450,000
that is, 4% of 450,000 = 18,000, pay it out as a scholarship or whatever,
gets you back to 450,000, another half year ---> 18,000 "perpetually" etc