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Home > Mathematics > General Mathematics > HSC Course > Financial Mathematics > FM5: Annuities and loan repayments > Quick quiz: A sample of multiple choice questions for this topic.

FM6

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.
    
   • $2052.99
   • $5 915 217.85
   • $25 678.92
   answer
   
    
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.
    
   • $1753.06
   • $1213.06
   • $12985.60
   answer
   
    
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

   
    
   • $3.03
   • $454.52
   • $453.03
   answer
   
    
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.
    
   • $45 036.73
   • $8325.68
   • $4865.21
   answer
   
    
5. Calculate the monthly loan repayment for a loan of $200 000 at 8.4% p.a for 15 years.
    
   • $14 092.15
   • $1957.77
   • $16 800.01
   answer
   
    
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.
    
   • $321
   • $268.50
   • $315
   answer
   
    

Answers

1. $25 678.92
    
2. $1753.06
    
3. $454.52
    
4. $45 036.73
    
5. $1957.77
    
6. $268.50
    

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