Free Printable Annuity

1.

What is the definition of annuity ?

a)

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

b)

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

c)

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

d)

A series of marvel movie !

2.

What is the formula for amount of annuity ?

a)

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

b)

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

c)

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

d)

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

3.

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?

a)

$r=12\%$

b)

$R=300$

c)

$n=24$

d)

$i=0.01$

4.

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

What is the meaning of $R$ ?

a)

Recycle

b)

Interest Period

c)

Periodic Payments

d)

Interest Rate

5.

When is payment made on an ordinary annuity?

a)

Beginning of the period

b)

Middle of the period

c)

First 3 days of the period

d)

End of the period

6.

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

a)

Annuity

b)

Bond

c)

Stocks

d)

Income

7.

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

a)

0.125

b)

0.0125

c)

0.25

d)

0.15

8.

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?

a)

less than RM5000

b)

more than RM5000

c)

equal to RM5000

d)

All of them

9.

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?

a)

RM3,129.09

b)

RM871.29

c)

RM275.76

d)

RM2,757.59

10.

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

a)

RM1,176.43

b)

RM7,200.00

c)

RM8,376.43

d)

RM2,235.56

11.

An ordinary annuity was purchased 5 years ago. The annuity pays 8% compounded quarterly. The quarterly payments have been RM500. What is the total value of the annuity to date?

a)

RM12,148.68

b)

RM2,602.02

c)

RM2,933.30

d)

RM22,880.98

12.

Sofi saves RM2,000 at the end of each six-month period in an ordinary annuity earning 6% interest compounded semiannually. How much will Sofi have saved in 4 years?

a)

RM16,000

b)

RM27,784.68

c)

RM32,000

d)

RM17,784.68

13.

Ilman is buying a home for RM300,000. The bank is requiring a down payment of 20% of the total cost. They obtain a 30-year mortgage at 4.2% interest rate for the home. What is his down payment amount?

a)

RM60,000

b)

RM12,600

c)

RM6,000

d)

RM1,260

14.

If you have an amortized loan, your monthly payment will _______________

a)

never be the same

b)

sometimes be the same

c)

always be the same

15.

Zaki wins an annuity that pays RM5,000 at the end of every six months for 6 years. What is the present value of this annuity if the money is worth 10% per annum continuous compounding?

a)

RM30,000

b)

RM134,231.67

c)

RM32,150.66

d)

None of the above

Annuity

Total questions: 15

Worksheet time: 22mins

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