Q1 (a) Give the definition of an annuity and give two examples of it. (2 marks) (CLO1:PLO2:C3) (b) Before entering university three months ago, Muthu invested RM 20000 at 8% compounded quarterly. From now on, he will withdraw the same amount every 3 months for four years. At the end of the fourth year, there will be zero balance and nothing to withdraw. How much is the withdrawal amount? (5 marks) (CLO3:PLO6:C3) Q2. A debt of RM 150,000 bearing interest at 5% annually is to be discharged by the sinking fund method. If five equal deposits are made into a fund pays 3% compounded annually, (a) find the annual interest payment, (1 mark) (CLO3:PLO6:C3) (b) find the size of the annual deposit into the sinking fund, 1 BUSS 1611 ASSIGNMENT 2 SPT/OCT 20 (3 marks) (CLO3:PL06:C3) (c) what is the annual cost of this debt? (2 marks) (CLO3:PLO6:C3) (d) construct the sinking fund schedule. (5 marks) (CLO3:PLO6:C4) Q1 (a) Give the definition of an annuity and give two examples of it. (2 marks) (CLO1:PLO2:C3) (b) Before entering university three months ago, Muthu invested RM 20000 at 8% compounded quarterly. From now on, he will withdraw the same amount every 3 months for four years. At the end of the fourth year, there will be zero balance and nothing to withdraw. How much is the withdrawal amount? (5 marks) (CLO3:PL06:C3) Q2. A debt of RM 150,000 bearing interest at 5% annually is to be discharged by the sinking fund method. If five equal deposits are made into a fund pays 3% compounded annually, (a) find the annual interest payment, (1 mark) (CLO3:PLO6:C3) (b) find the size of the annual deposit into the sinking fund, 1 Q1 (a) Give the definition of an annuity and give two examples of it. (2 marks) (CLO1:PLO2:C3) (b) Before entering university three months ago, Muthu invested RM 20000 at 8% compounded quarterly. From now on, he will withdraw the same amount every 3 months for four years. At the end of the fourth year, there will be zero balance and nothing to withdraw. How much is the withdrawal amount? (5 marks) (CLO3:PLO6:C3) Q2. A debt of RM 150,000 bearing interest at 5% annually is to be discharged by the sinking fund method. If five equal deposits are made into a fund pays 3% compounded annually, (a) find the annual interest payment, (1 mark) (CLO3:PLO6:C3) (b) find the size of the annual deposit into the sinking fund, 1 BUSS 1611 ASSIGNMENT 2 SPT/OCT 20 (3 marks) (CLO3:PL06:C3) (c) what is the annual cost of this debt? (2 marks) (CLO3:PLO6:C3) (d) construct the sinking fund schedule. (5 marks) (CLO3:PLO6:C4) Q1 (a) Give the definition of an annuity and give two examples of it. (2 marks) (CLO1:PLO2:C3) (b) Before entering university three months ago, Muthu invested RM 20000 at 8% compounded quarterly. From now on, he will withdraw the same amount every 3 months for four years. At the end of the fourth year, there will be zero balance and nothing to withdraw. How much is the withdrawal amount? (5 marks) (CLO3:PL06:C3) Q2. A debt of RM 150,000 bearing interest at 5% annually is to be discharged by the sinking fund method. If five equal deposits are made into a fund pays 3% compounded annually, (a) find the annual interest payment, (1 mark) (CLO3:PLO6:C3) (b) find the size of the annual deposit into the sinking fund, 1
