Exam 23: Annuities

A food processing plant in Poland takes out a loan of 1 million Polish Zloty (PLN) subject to interest at 6%. What must the annual payment be in order to pay the loan back in exactly 10 years (to the nearest 1 PLN)?

A software company in Singapore fixes the rent for its office at 24,000 Singapore Dollars (SGD) per year payable in advance. Assuming a discount rate of 8%, calculate the total value of the payments in today's terms (to the nearest $10).

The payment of a pension is an example of which type of annuity?

A company in Lagos, Nigeria needs to repay a debt totalling 900,000 Nigerian Naira (NGN) in 3 years' time. Assume payments are made into a sinking fund in arrears and can be invested at 7.5%. How much must the company save in order to meet its commitments (to the nearest NGN 10)?

Which of the following options is the BEST definition of an annuity?

Calculate the value of an investment in which 1.9 million Uzbekistani Som (UZS) are invested each year, for 3 years, at 15% (to nearest UZS 10,000).

Which of the following items is not a normal requirement for an amortization schedule?

€20,000 is borrowed over 3 years at 9.5% compounded. Calculate the annuity that must be paid into the sinking fund in order to meet this commitment, assume payments are made in arrears and can be invested at 4.5% (to the nearest €10).

Use a geometric progression to calculate the value of an investment where 12 monthly payments of £250 are made with a nominal level of interest of 4.8% accrued monthly (to the nearest £1).

When setting up a depreciation schedule, which of the following values is not required?