Business Mathematics

What is the definition of annuity ?

• A series of equal amount of payment /deposits made at equal intervals time

• A series of equal amount of discount made at equal intervals time

• A series of equal amount of annuity made at equal intervals time

• A series of marvel movie !

What is the formula for amount of annuity ?

• $S=\ R\ \left(\frac{\left(1+i\right)^{n\ }+\ 1}{i}\right)$

• $S\ =\ R\ \left(\frac{\left(1+r\right)^{n\ }-\ 1}{i}\right)$

• $S\ =\ R\ \left(\frac{\left(1+r\right)^{n\ }-1}{r}\right)$

• $S\ =\ R\ \left(\frac{\left(1+i\right)^{n\ }-1}{i}\right)$

Rizman has to pay RM300 every month for 24 months to settle a personal loan at 12% compounded monthly. Which of the information given are the periodic payments?

• $r=12\%$
  

• $R=300$
  

• $n=24$
  

• $i=0.01$
  

Given the formula: $S\ =\ R\ \left(\frac{\left(1\ +\ i\ \right)^n-1}{i}\right)$ .

What is the meaning of  $R$  ?

• Recycle

• Interest Period

• Periodic Payments

• Interest Rate 

When is payment made on an ordinary annuity?

• Beginning of the period

• Middle of the period

• First 3 days of the period

• End of the period

A sequence of payments made at equal (fixed) intervals or periods of time

• Annuity

• Bond

• Stocks

• Income

Calculate the PERIODIC interest rate for a RM10,000 loan compounded monthly at an annual rate of 15%.

• 0.125

• 0.0125

• 0.25

• 0.15

An investor has been making RM1,000 annual contributions to his account for five years. In this problem, should the future value be more than, less than, or equal to RM5,000?

• less than RM5000

• more than RM5000

• equal to RM5000

• All of them

Samy plans to have RM350,000 in a retirement fund 30 years from now. What monthly ordinary annuity payment should he make if the investment he has selected earns 7.2% annual interest?

• RM3,129.09

• RM871.29

• RM275.76

• RM2,757.59

Kamal deposits RM100 every month for 6 years into an account that earns 5% compounded monthly. How much interest will he earn?

• RM1,176.43

• RM7,200.00

• RM8,376.43

• RM2,235.56