A company promises to pay 6% interest annually, forever, on Rs 5,000 invested in one of its policies. Find out the present value of perpetuity annuity. You have to choose between two savings accounts....

A company promises to pay 6% interest annually, forever, on Rs 5,000 invested in one of its policies. Find out the present value of perpetuity annuity.

You have to choose between two savings accounts. One pays an annual rate of 6.10% compounded quarterly, whereas the other pays an annual rate of 6% compounded monthly. Which account will give you greater value?