Finance Exercise on Annuities and Interest Rates
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Questions and Answers

What is the total value of the 8 annuities of 22,500 DH each on 31/10/2004 given a quarterly interest rate of 4.5%?

  • 180,000 DH
  • 172,500 DH (correct)
  • 200,000 DH
  • 150,000 DH
  • If the semestral rate t1 is known, how is the equivalent annual rate t calculated given that t1 - t2 = 0.06%?

  • t = 2 * t1 + 0.06%
  • t = 2 * t1
  • t = t1 + 0.06%
  • t = 2 * t1 - 0.06% (correct)
  • What is the formula for calculating the future value of annuities paid quarterly at an interest rate of 4.5%?

  • |A = P × r / ((1 + r)^n - 1)|
  • |A = P / r × (1 - (1 + r)^-n)|
  • |A = P × ((1 + r)^n - 1) / r| (correct)
  • |A = P × (1 + r)^n|
  • Which of the following statements correctly describes the relationship between t1 and t2?

    <p>t1 equals t2 plus 0.06%.</p> Signup and view all the answers

    If a quarterly interest rate is 4.5%, what is the equivalent annual nominal interest rate?

    <p>18%</p> Signup and view all the answers

    Study Notes

    Exercise 3

    • Calculate the value of an 8-year annuity with payments of 22,500 DH each, starting on 31/10/93.
    • The interest rate is 4.5% per quarter.
    • The calculation should be performed on 31/10/2004.

    Exercise 4

    • A certain interest rate (t) has semiannual interest rates (t1) and (t2) which are proportional and equivalent.
    • The relationship between these rates is t1 - t2 = 0.06%.
    • Calculate the annual interest rate (t).

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    Description

    This quiz covers calculations related to annuities and interest rates. You will perform numerical evaluations for a specific annuity and determine the annual interest rate based on given semiannual rates. Test your skills with real-life financial scenarios and mathematical applications.

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