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Introduction to Annuity

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Kristoff is investing for an educational plan for his son. He deposits every end of the month a regular payment of P5,000 with with an interest rate of 6% compounded monthly for 7 years.

What is the value of R?

a)

6

b)

0.06

c)

7

d)

5,000

2.

Kurt invested on a housing plan account which he pays P10,000 at the end of each quarter with a monthly compound interest of 1.25% for 5 years. What type of annuity is Kurt investing in?

a)

General Annuity

b)

Simple Annuity

3.

Lester makes a regular payment of P3,000 every 6 months for 10 years on an investment account with a compounding interest of 3% semi-annually.

what type of annuity is the account?

a)

General Annuity

b)

Simple Annuity

4.

An account with a regular monthly payment of P14,000 has a monthly compounding interest of 5.13% for 10 years. What kind of annuity is the account?

a)

General Annuity

b)

Simple Annuity

5.

If an simple annuity account has a regular payment of P6,000 with a quarterly compounding interest of 3%, how many times will you regularly pay it each year for 7 years?

a)

1

b)

2

c)

4

d)

cannot be determined

6.

A general annuity account is to be paid regularly of P3,000 with a compounding interest of 1.56% semi-annually for 7 years. How many times will you pay the account each year?

a)

1

b)

2

c)

14

d)

cannot be determined

7.

An account with a regular monthly payment of P9,000 has a compound interest of 4.56% for 10 years. How many times will the interest compound in one year if it is an ordinary annuity?

a)

1

b)

4

c)

12

d)

cannot be determined

8.

It is the type of annuity in which payments are made at the beginning of each payment interval.

a)

Ordinary Annuity

b)

Annuity Certain

c)

Annuity Due

d)

Contingent Annuity

9.

Drake borrowed P12,000 from Kent and promised to pay him P1,000 every month for one year with a compounding interest of 0.5% monthly. What type of annuity is this?

a)

Ordinary Annuity

b)

Annuity Due

c)

Annuity Certain

d)

Contingent Annuity

10.

Jake invested in a life insurance with regular payments of P2,000 monthly with a monthly compounding interest of 1.65% until he reaches 65 years old. What type of annuity is this?

a)

Ordinary Annuity

b)

Annuity Due

c)

Annuity Certain

d)

Contingent Annuity