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Financial Maths, 2ADV M1 2023 HSC 15

A table of future value interest factors for an annuity of $1 is shown.
 

  1. Micky wants to save $450 000 over the next 10 years.
  2. If the interest rate is 6% per annum compounding annually, how much should Micky contribute each year? Give your answer to the nearest dollar.  (2 marks)

  3. Instead, Micky decides to contribute  $8535 every three months for 10 years to an annuity paying 6% per annum, compounding quarterly.
  4. How much will Micky have at the end of 10 years?  (3 marks)

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a.   

 
   

 
b.   

 
   

Financial Maths, 2ADV M1 2022 HSC 21

Eli is choosing between two investment options.

A table of future value interest factors for an annuity of $1 is shown.

  1. What is the value of Eli's investment after 10 years using Option 1 ?  (2 marks)

  2. What is the difference between the future values after 10 years using Option 1 and Option 2?  (2 marks)

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a.   

 
   
   

 

b.   

 
   

 

 
   

Financial Maths, 2ADV M1 2021 HSC 25

A table of future value interest factors for an annuity of $1 is shown.
 

   

Simone deposits $1000 into a savings account at the end of each year for 8 years. The interest rate for these 8 years is 0.75% per annum, compounded annually.

After the 8th deposit, Simone stops making deposits but leaves the money in the savings account. The money in her savings account then earns interest at 1.25% per annum, compounded annually, for a further two years.

Find the amount of money in Simone's savings account at the end of ten years.  (3 marks)

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Mean mark 52%.

 
 
 
 

Financial Maths, 2ADV M1 EQ-Bank 1

Ralph opens an annuity account and makes a contribution of $12 000 at the end of each year for 9 years.

For the first 8 years, the interest rate is 4% per annum, compounded annually.

For the 9th year, the interest rate decreases to 3% per annum, compounded annually.
 


 

Use the Future Value of an Annuity table to calculate the amount in the account immediately after the 9th contribution is made.  (3 marks)

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Financial Maths, STD2 F5 2019 HSC 42

The table shows the future values of an annuity of $1 for different interest rates for 4, 5 and 6 years. The contributions are made at the end of each year.
 


 

An annuity account is opened and contributions of $2000 are made at the end of each year for 7 years.

For the first 6 years, the interest rate is 4% per annum, compounding annually.

For the 7th year, the interest rate increases to 5% per annum, compounding annually.

Calculate the amount in the account immediately after the 7th contribution is made.  (3 marks)

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♦♦ Mean mark 27%.

 

 

 
 

Financial Maths, STD2 F5 2017 HSC 27c

A table of future value interest factors for an annuity of $1 is shown.
 


 

An annuity involves contributions of $12 000 per annum for 5 years. The interest rate is 4% per annum, compounded annually.

  1. Calculate the future value of this annuity.  (1 mark)

  2. Calculate the interest earned on this annuity.  (1 mark)

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i.  

 
♦♦ Mean mark part (ii) 22%.
COMMENT: A very poorly answered question dealing with a core concept in this area.

 

ii.  
   
   

Financial Maths, STD2 F5 2005 HSC 26b

Rod is saving for a holiday. He deposits $3600 into an account at the end of every year for four years. The account pays 5% per annum interest, compounding annually.

The table shows future values of an annuity of $1.
 

2UG-2005-26b
 

  1. Use the table to find the value of Rod’s investment at the end of four years.   (2 marks)

  2. How much interest does Rod earn on his investment over the four years?   (2 marks)

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i.   

 

ii. 
 
 

Financial Maths, STD2 F5 SM-Bank 4

Dominique wants to save $15 000 to use as spending money when she travels overseas in 2 years' time.  

If she invests $3500 at the end of every 6 months into an account earning 4% p.a., compounded half-yearly, will she have enough?

Use the table below to justify your answer.   (2 marks)
 

 

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Financial Maths, STD2 F5 2014 HSC 21 MC

A table of future value interest factors is shown.

2014 21 mc

A certain annuity involves making equal contributions of $25 000 into an account every 6 months for 2 years at an interest rate of 4% per annum.

Based on the information provided, what is the future value of this annuity? 

  1.    
  2.    
  3.    
  4.    
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♦ Mean mark 43%


 

Financial Maths, STD2 F5 2011 HSC 27d

Josephine invests $50 000 for 15 years, at an interest rate of 6% per annum, compounded annually.

Emma invests $500 at the end of each month for 15 years, at an interest rate of 6% per annum, compounded monthly. 

Financial gain is defined as the difference between the final value of an investment and the total contributions.

Who will have the better financial gain after 15 years? Using the Table below* and appropriate formulas, justify your answer with suitable calculations.   (4 marks)
  2UG-2011-27d1

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♦ Mean mark 42%
COMMENT: Note that compound interest vs annuity comparisons are commonly tested.

 
 

 

 

 

 

 

 

 
 
 

 

Financial Maths, STD2 F5 2009 HSC 27a

The table shows the future value of a $1 annuity at different interest rates over different numbers of time periods. 
 

2UG-2009-27a

  1. What would be the future value of a $5000 per year annuity at 3% per annum for 6 years, with interest compounding yearly?   (1 mark)

  2. What is the value of an annuity that would provide a future value of  $407100  after 7 years at 5% per annum compound interest?   (1 mark)

  3. An annuity of $1000 per quarter is invested at 4% per annum, compounded quarterly for 2 years. What will be the amount of interest earned?    (3 marks)

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i. 

 


ii.   

♦ Mean mark 45%
MARKER’S COMMENT: A common error was to multiply $407 100 by 8.1420 rather than divide.

 
 

 

iii. 

♦♦ Mean mark 31%
MARKER’S COMMENT: When questions asked for the interest paid on annuities, remember to subtract the total principal amounts contributed.