General Mathematics · Unit 4 · Loans, investments and annuities 2 · Perpetuities and future value of ordinary annuities
AI-marked practice questions tied to QCAA mark schemes for this exact LO. Free to start.
Start free practiceFull questions, answers and worked solutions unlock when you start a free practice session.
A retiree receives a perpetuity that pays $2,400 every quarter. The perpetuity has an interest rate of 6.2% per annum compounded quarterly. Determine the amount paid for the perpetuity, correct to the nearest cent.
A perpetuity pays $4,500 each year. If the interest rate is 6% per annum, what is the present value of the perpetuity?
A couple saved for their retirement by making the same monthly payments for 15 years into an account that earned 3.6% p.a. compounded monthly. At the age of 65, the couple retired and used all their savings to purchase a perpetuity with an interest rate of 5.4% p.a. compounded monthly, paying $2800 each month. How much did they save each month to prepare for their retirement?