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Annuity Calculations and Financial Planning

The document presents 22 practice problems related to the calculation of simple and compound annuities, both due and deferred. The problems cover topics such as calculating payments to save a certain amount, determining the accumulated amount with periodic deposits, calculating the present value of a series of payments, and calculating payments for loan amortization.

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2 views2 pages

Annuity Calculations and Financial Planning

The document presents 22 practice problems related to the calculation of simple and compound annuities, both due and deferred. The problems cover topics such as calculating payments to save a certain amount, determining the accumulated amount with periodic deposits, calculating the present value of a series of payments, and calculating payments for loan amortization.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ANNUITY PRACTICE 02

Expired uniform rent based on S


1. Calculate the amount of the constant rent placed at the end of each quarter.
for 4 years allows the establishment of an amount of S/ 20,000. The applicable annual nominal interest rate is
36% with monthly capitalization.
2. The company Minitab plans to acquire a computer equipment in six months.
interconnected for the whole company at S/ 10,000. With this objective, management
financial can place its estimated monthly cash surplus (estimated at S/ 3,000)
in a financial institution that pays a nominal interest rate of 2%. What constant amount of
At the end of the month, how much should be saved to accumulate S/ 10,000 by the end of the sixth month?
3. It is planned to replace a machine within 4 months, whose price is estimated to be
that amount will be S/ 5,000. What constant amount should be deposited at the end of the month?
during that period in a bank that pays an annual interest rate of 5%, in order to buy it.
machine with capitalized savings?
A loan of S/ 5,000 is taken out at Banco Kaput to repay the principal.
within a year and pay quarterly only the interest, with a TET of 8%. The
borrower, in order to pay off the principal upon its maturity, wishes to accumulate a fund and
For this purpose, make constant quarterly deposits in the Southern Bank, with a nominal interest rate.
of 2%; Calculate the total quarterly payment that will allow you to accumulate the fund and pay the
quarterly interests

Expired uniform rent based on P


5. A loan of S/ 5,000 must be amortized over the course of a year with installments.
monthly uniforms with an APR of 36% capitalizable monthly. Calculate the
amount of that constant fee.
6. The company Delfín S.A. sells its machines for cash at S/ 10,000, but due to
who obtains financing from abroad is planning to make sales to
credit with an initial payment of S/ 5,000 and six equal installments due at
30 days each. If the annual nominal interest rate to be applied to the financing is 25%, calculate the amount of
the installments of the installment sales program.
7. A car was purchased for a cash price of S/ 12,000, a payment was made for an installment.
initial of S/ 2,000 and the amortizable balance over a period of 4 months is with installments
equal monthly payments. What is the amount of the uniform installment if the cost of the
financing is 2% effective monthly?
8. Prepare a financing alternative for a machine that is sold to the
sold at a price of S/ 4,000. Payment on credit will be granted with an initial installment
equivalent to 25% of the cash price and six uniform installments payable every 30 days
days. A 5% TEM will be charged on the outstanding balance.
9. In the acquisition of a machine, a company receives the following proposals:

Proposals A B
Useful life (years) 10 12
Cash price S/ 5,000 5,800
What is the most convenient proposal given an opportunity cost of 15%?
annual effective?
10. A company requests a loan of S/ 200,000 from a financial institution to be
reimbursed in 2 years with uniform installments every 90 days, with an annual interest rate of 2%.
During the first year, the installments must be equivalent to 40% of the loan, and
during the second year they must be equivalent to 60% of the loan. Calculate the
import of the dues during the first and second year.

Amount of a simple annuity in advance


11. In one semester, deposits of S/ 10,000 are made at the beginning of each month, in a
bank that pays interest on those deposits with an annual nominal interest rate of 36% compounded monthly.
What amount will accumulate at the end of the fourth month?
On the first business day of each month, the company P & G deposits 20% of its
cash surpluses amounting to S/ 500,000. If for such deposits it receives a
3% interest, how much will have accumulated at the end of the sixth month?
13. A person deposits into a savings account at the beginning of each quarter a
constant import of S/ 20,000. What amount will accumulate in the term of two years if
does it perceive a TNA of 24% capitalized quarterly?
14. What amount can be accumulated over 3 consecutive years if S/ 1,000 is deposited?
at the beginning of each month in a bank that rewards those deposits with an annual nominal interest rate of 24%

capitalizable monthly?
15. What will be the amount at the end of the sixth month if deposits of S/ 1,000 are made?
start of each month in a banking institution that pays an APR of 36% with
quarterly capitalization?
16. What amount will have accumulated in a savings account if at the beginning of the month and
for 8 consecutive months S/ 8,000 was deposited in a bank that pays interest on that
savings with an EAR of 12%?

Present value of an ordinary annuity due


17. The rent for a commercial premises is S/ 5,000, a payment that must be made at the beginning of
every month. The owner of the premises proposes to the tenant to apply a discount on the
monthly installments, with a monthly interest rate of 4% in case I pay in advance the
rents corresponding to a year. Calculate the present value of the twelve payments
anticipated.
A mutual credit that earns an annual nominal interest rate (TNA) of 36% capitalizable quarterly was
hired to fall in love with 20 uniform quarterly payments of S/ 250.
Upon the maturity of the deposit 12, the client decides to cancel it together with
the unpaid installments. What is the total amount to be canceled on that date?
19. What is the equivalent cash price of a machine that is sold on credit?
with 12 monthly advance payments of S/ 2,000 each? The opportunity cost
Is it a 2% TEM?
20. Calculate the total amount of interest to be paid in the amortization of a loan.
agreed to an interest rate of 4% for half a year with equal monthly deposits
from S/ 500.
21. For the acquisition of a machine, 20% of its price is available in cash. The
the balance will be financed by the same provider with 12 equal installments
Monthly payments of S/ 600 each, with an APR of 3%. Calculate the cash price.
equivalent of the machine.
22. Calculate the present value of an annuity composed of 20 uniform rents.
advance quarterly payments of S/ 2,000 each applying an effective monthly rate of 1.5%.

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