Annuities Flashcards
Robyn deposits $400 at the end of each 4 month block for 3 years into an account earning 18% p.a. compounded every 4 months. What single sum of money invested now at the same rate would achieve the same financial result?
$2720.68
Hadi borrows $10000 from a bank at 8% p.a. to remodel his kitchen. He wants to repay the loan in equal annual repayments over 4 years.
- How much does Hadi repay each year?
- Calculate the total amount Hadi will repay to the bank over the 4 years.
- $3300
- $13 200
David and Sarah bought a second-hand motorhome for $19 500 to travel around Australia. There were two options for paying for the motor home.
A) 20% deposit and 36 monthly instalments of $595.
B) No deposit and monthly instalments over 4 years at 8.9% p.a.
By calculating and comparing, find which plan:
A) Charges more interest.
B) Has lower monthly instalments.
A) Plan B
B) Plan B
Scott purchased an engagement ring for $7560, paying $100 deposit and 7.2% p.a. interest for 18 months. What was the total amount paid for the ring? A) $8365.68 B) $8265.68 C) $7460 D) $8056.80
A
Two finance companies offered deferred payment plans and charged interest of 0.2% per day on outstanding amounts from purchase date.
Local Loans: 10% deposit then nothing to pay for 12 months.
Feelgood Finance: Buy now and pay nothing for 100 days.
A) Jayden bought a $1600 desk through Local Loans. Find:
I) The amount owing 12 months after purchase.
II) The amount owing after 396 days if only the deposit had been paid.
B) Adison bought a computer for $1350 using Feelgood Finance. Calculate the amount if he repaid the debt in full after:
I) 90 days.
II) 101 days.
A)
I) $1440
II) $1532
B)
I) $1350
II) $1352.7
What is the future value when $27 000 is invested for 16 years at 7% p.a.? A) $52 708 B) $30 240 C) $57 240 D) $79 708
D
A house was purchased in Sydney in 1987 for $86 200. Assume that the value of the house has increased by 3% per annum since then. Which expression gives the future value of the house in 2015?
A) 86 200(1+ 0.03)^28
B) 86 200(1 + 0.3)^28
C) 86 200 x 28 x 1.03
D) 86 200 x 28 x 1.3
A
What present value must be invested to grow to $50 000 at:
A) 7.5% p.a. for 4 years?
B) 9.2% p.a. compounded monthly for 8 years?
C) 10% p.a. compounded quarterly for 2 years?
A) $37 440.03
B) $24 018.64
C) $41 037.33
If a present value of $5000 is invested for 4 years, which is the best interest rate?
A) 6% p.a. compounded interest.
B) 5.8% p.a. compounded quarterly.
C) 6.2% p.a. simple interest.
D) 5.2% p.a. compounded monthly.
A
Roberto is charged 0.04% compound interest per day on his credit card purchase of $1200. Find the amount of interest owing after 30 days.
A) $14.40
B) $14.48
C) $4.80
D) $12.00
B
Karin has a credit card that charges simple interest of 22.5% p.a. and has no interest-free period. She bought shoes for $235 on 21 December and paid her account on 30 December. Find the amount she paid.
A) $235
B) $287.88
C) $236.30
D) $1.30
C
Eamon has a credit card with no interest-free period and a simple interest rate of 0.0453% per day. The purchases below were made in October. If Eamon pays his account in full on 1 November, how much does he pay?
4 October Swim trunks $45.95
18 October Swim goggles $88.00
25 October Wetsuit $275.00
$410.78
David and Sarah bought a dining table and chairs for $2100 on 11 July using a credit card. Simple interest was charged at a rate of 20.35% per annum for purchases on the credit card. No other purchases were made on this credit card account. There was no interest-free period. The period over which interest was charged included the purchase date and the payment date. What amount was paid when Sarah paid the account in full on 19 August?
A) $2135.12
B) $2137.47
C) $2145.66
D) $2146.83
D
