Annuity Quiz

What is an annuity?

• A series of random payments

• A series of unequal payments

• A one-time payment

• A series of equal payments

What is the future value of an annuity?

• The amount of periodic payment

• The total interest earned

• The present value of the periodic payments

• The sum of all future values of the periodic payments

In the context of annuity, what does the present value represent?

• The amount of periodic payment

• The sum of all future values of the periodic payments

• The total interest earned

• The sum of all present values of the periodic payments

What is the formula for calculating the future value of an ordinary annuity certain?

What is the future value of an annuity?

• The amount of periodic payment

• The sum of all future values of the periodic payments

• The present value of the periodic payments

• The total interest earned

What is the present value of an annuity?

• The sum of all future values of the periodic payments

• The total interest earned

• The sum of all present values of the periodic payments

• The amount of periodic payment

What is the formula for calculating the Interest of future value of an ordinary annuity certain?

• 
  I=S-nR

• I=A-nR

• I=S-A

• I=nS-R

What is the formula to calculate the Present Value of the ordinary annuity certain?

What is the formula for calculating the Interest of present value of an ordinary annuity certain?

• 
  I=S-nR

• I=A-nR

• I=S-A

• I=nS-R

The cash price of a house is RM 250,000. Mira paid a down payment of 10% and took a loan at 3.5% compounded monthly to finance the balance. The loan is to be repaid over 25 years by monthly installments.

Question: What is the value of the down payment?

• RM30000

• RM250 000

• RM 25 000

• RM 2500