Mathematics
Home > Mathematics > General Mathematics > HSC Course > Financial Mathematics > FM5: Annuities and loan repayments > Quick quiz: A sample of multiple choice questions for this topic.
FM5
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1. Jody
deposits $150 per month in an account earning 6.8% interest p.a.
If the interest is compounded monthly, what is the amount in her
account after 10 years.
2.
Anisch puts $500 into an account, earning 8% p.a interest at the start
of each year.
| Year | Annual Payment | Balance at beginning of year | Interest | Balance at end of year |
|---|---|---|---|---|
|
1
2 3 |
$500 $500 |
$500 $1040 |
$40 $83.20 |
$540 $1123.20 |
This table shows the first two years progress of the annuity.
Calculate
the balance at the end of the 3rd year.
3. Use the table to find, to the nearest cent, the future value of an ordinary annuity of $150 per month invested at 12% for 3 months.
| Interest rate per period (%) | ||||
|---|---|---|---|---|
| Period (n) | 1% | 2% | 3% | 4% |
|
1
2 3 |
1.0000 2.0100 3.0301 |
1.0000 2.0200 3.0604 |
1.0000 2.0300 3.0909 |
1.000 2.0400 3.1216 |
4. Calculate the present value N of an annuity where $500 a month is paid into an account earning 6% p.a. and the fund matures in 10 years.
5. Calculate the monthly loan repayment for a loan of $200 000 at 8.4% p.a for 15 years.
6. Stamp
duty is charged on home loans at a rate of $6 on the first $15 000
of the loan plus $3.50 for every $1000 (or part thereof) over $15
000.
Calculate the stamp duty on a loan of $90 000.
|