Financial maths 2

What is an annuity worth today if you are offered €8000 per year at a rate of 6%? (first payment made today)

• €64213.35

• €62413.53

• €61342.53

• €63421.35

You are offered an annuity that will pay €15000 per year for 5 years at a rate of 7% (first payment today). What is this annuity worth to you today?

You are offered an annuity that will pay €10000 per year for 10 years at a rate of 8% ( first payment one year from today). What is the annuity worth to you today?

You are offered an annuity that will pay €15000 per year for 5 years at a rate of 6%, first payment a year from today. What is this annuity worth to you today?

A bond offers a return of 30% after 6 years. Calculate the AER of this bond, correct to 2 d.p.

A sum of €5000 is invested in an eight year government bond with an AER of 6%. Find the value of the investment when it matures.

Calculate the number of years it will take for a sum of €20000 to grow to €36122.22, when invested at an AER of 3%

A savings society offers an AER of 6%. If the interest is compounded quarterly, what will the rate per quarter be? (2 d.p.)

A building society offers an AER of 4%. What will the rate per month be? (3 d.p)

A car was bought for €35000. After four years it was worth €14336. What was the rate of depreciation (reducing balance method)?