An endowment of ₹5,00,000 is invested at 6% a year. What yearly prize can it pay for ever?

Explanation

1. 01

   A perpetuity's payment is the yearly interest on its value: $R = PV \times i$.

2. 02

   $5{,}00{,}000 \times 0.06 = 30{,}000$ rupees a year.