Free Printable Annuity & Compound Interest

1.

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)

$i=0.01$

2.

Krystal has RM3000 invested at a 2% interest compounded monthly. Which expression can be used to determine how much money Krystal had after 16 years?

a)

$S=3000\left(1+\frac{0.02}{12}\right)^{12\times16}$

b)

$S=3000\left(1-\frac{0.02}{12}\right)^{12\times16}$

c)

$S=3000\left(\left(1+\frac{0.02}{12}\right)^{12\times16}-1\right)\div\left(\frac{0.02}{12}\right)$

d)

$A=3000\left(1-\left(1+\frac{0.02}{12}\right)^{-12\times16}\right)\div\left(\frac{0.02}{12}\right)$

3.

Kamal deposits RM100 every month for 6 years into an account that earns 5% compounded monthly. Which expression can be used to find the interest earned?

a)

$I=100\left(\frac{\left(1+\frac{0.05}{12}\right)^{12\times6}-1}{\frac{0.05}{12}}\right)-100\times12\times6$

b)

$I=100\left(\frac{\left(1+\frac{0.05}{12}\right)^{12\times6}-1}{\frac{0.05}{12}}\right)-100$

c)

$I=100\times6\times12-100\left(\frac{1-\left(1+\frac{0.05}{12}\right)^{-12\times6}}{\frac{0.05}{12}}\right)$

d)

$I=100\left(1+\frac{0.05}{12}\right)^{12\times6}-100$

4.

Steve deposited RM5,000 in a savings account that pays 4% interest compounded annually.

Which equation could be used to find the value of the account after 3 years?

a)

S = 5,000(1 + 4)³

b)

S = 5,000(1 + 0.04)³

c)

$A=5000\left(\frac{1-\left(1+\frac{0.04}{1}\right)^{-1\times3}}{\frac{0.04}{1}}\right)$

d)

$S=5000\left(\frac{\left(1+\frac{0.04}{1}\right)^{1\times3}-1}{\frac{0.04}{1}}\right)$

5.

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

6.

Semi-Annually means how many times a year? (m)

a)

4

b)

2

c)

1

d)

6

7.

Zaki needs to pay RM500 at the end of every six months for 6 years with 6% compounded semi-annually. What is the amount of the loan?

a)

RM23,762.68

b)

RM5,000

c)

RM4,977

d)

None of the above

Annuity & Compound Interest

Total questions: 7

Worksheet time: 4mins

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