In this Post you will Get **Annuities Question Bank** for Class 12 and **B.COM 2nd and 4th SEM CBCS Pattern.Â **This Question Bank is prepared keeping in view various exams and universities especially all those universities which follow **CBCS Pattern.** Our main focus on

– Dibrugarh University

– Gauhati University

– Assam University

– AHSEC Class 12 BMST

– Kolkata University

– IGNOU

This **Annuities Question Bank** also includes Questions asked in above mentioned universities exams.

**Annuities Question Bank**

**For B. Com 2**^{nd }and 4^{th} Sem CBCS Pattern (Hons and Non Hons)

^{nd }and 4

^{th}Sem CBCS Pattern (Hons and Non Hons)

**Theory:**

1. What is annuity?

2. Write down the definition of sinking fund and perpetuity.

3. Define perpetuity and deferred annuity.

4. What do you mean by present worth of annuities?

5. What do you mean by annuity?

6. What do you mean by a sinking fund?

**Calculation of amount due**

1. A man deposits Rs. 1,200 in a bank at the end of each year @ 5% p.a. CI. What would be his deposit after 15 years? Similar Question. A man deposits Rs. 1,200 at the end of each year in a bank @ 5% p.a. CI. How much he would get after 15 years? (Given:Â )

2. A man deposited Rs. 400 every year in a fund at 3% p.a. compounded annually. After some years he received Rs. 4,064 as amount from the fund. Find the number

of years.

3. A man decides to deposit Rs. 7,000 half-yearly in a bank which pay 4% p.a., compound interest payable half-yearly. Find the total accumulation at the end of 6 years, assuming that the investments are made at the end of each half-year. Given:Â )

4. How much should be deposited in a bank every year to create a sinking fund of Rs. 5,00,000 at the end of 25 years, the rate of interest being 5% p.a.?

5. The cost of a computer is Rs. 1,00,000 and its life period is estimated to be 20 years. After 20 years, the computer is expected to cost more by 20% over its present cost. Find the sum to be invested every year at 5% p.a. C.I. for 20 years to replace this computer. Â Â Â Â Â Â Â Â Â Â Â

6. A machine costs a company Rs. 52,000 and its effective life is estimated to be 25 years. A sinking fund is created for replacing the machine by a new model at the end of its life time, when its scrap realises a sum of Rs. 2,500 only. The price of the new model is estimated to be 25 % more than the price of the present one. What amount should be retained out of profit at the end of each year for the sinking fund, if it accumulated at 3.5% p.a. CI?

7. A company sets aside a sum of Rs. 10,000 annually to accumulate at 4% p.a. CI for 10 years, to repay a debenture issue amounting to Rs. 1, 20,000. Find the surplus after paying off the debenture.

**ALSO READ: BUSINESS MATHEMATICS QUESTION BANK**

**UNIT 1: MATRIX AND DETERMINANTS**

**UNIT 2: FUNCTIONS, LIMIT AND CONTINUITY QUESTION BANK**

**UNIT 4: SIMPLE INTEREST, COMPOUND INTEREST AND ANNUITIES**

**UNIT 5: LINEAR PROGRAMMING**

– LINEAR PROGRAMMING QUESTION BANK

**Present value**

1. Write down the formula for calculating present value of an immediate annuity if interest is compounded quarterly, half yearly and monthly stating the meaning of the symbols used.

2. Ramen bought a house, paying Rs. 1,00,000 down and Rs. 20,000 at the end of each year for 25 years. If Interest is charged at 5% p.a. compound interest, what would be the cash down price of the house? [Given :Â ]

3. A man decided to buy a colour TV at Rs. 16,500. He paid Rs. 2,500 each and the remaining balance in 15 equal yearly installments at the rate of 4% p.a. CI. What was the value of each installment?

4. Mohit borrows Rs. 12,500 at 5% p.a. CI and agrees to replay the loan with interest in 5 equal annual installments, the first payment being made at the end of first year. Find the value of each yearly installment to be paid by him.

5. Mr. Hazarika borrows Rs. 20,000 at 4% compound interest p.a. and agrees to pay both the principal and interest in 10 equal installments at the end of each year. Find the value of each installment.

6. A man borrows Rs. 10,000 under the condition that he will repay with compound interest @ 5% p.a. by annual installments of Rs. 1000 each. In how many years will be debt be paid off?

7. What sum will buy an annuity of Rs. 1050 for 4 years, the rate of interest being 3.5% p. a C. I?

8. Mr. Roy borrows Rs. 20,000 at 4% compound interest and agrees to pay both principal and interest in 10 equal annual installments at the end of each year. Find the amount of each installment.Â [GivenÂ ]

9. A man borrows Rs. 12,500 at 5% p.a. CI and agrees to repay the loan with interest in 5 equal annual installments, the first payment being made at the end of the first year. Find the amount of each payment correct to nearest rupee. (GivenÂ )

10. A company borrows Rs. 10,000 on condition to repay with C.I at 5% p.a. by annual installments of Rs. 1,000 each. In how many years will the debt to paid off?

11. Ravi buys a washing machine by paying Rs. 4,000 in cash and the balance in 5 yearly installments of Rs. 1,500 each payable at the end of each year. If interest charged is 5% find how much he should have paid had he purchased in each down.

12. Manish buys of bike by giving Rs. 15,000 cash and the balance in 15 equal annual installments of Rs. 10,000 each. If the rate of interest is 16% p.a. compounded annually, how much he should have paid, if he had bought it cash down?

**Annuities Question Bank**

**Dibrugarh University Past Exam Questions**

**2022**

1. Define perpetuity and deferred annuity.

2. What do you mean by present worth of annuities?

3. A house was purchased on instalment basis such that Rs. 50,000 is to be paid at the time of purchase and the remaining amount by 4 yearly instalments of Rs. 30,000 each. Find the credit price of the house when compound rate of interest is 5% p.a.

**2019**

1. A flat was arranged to purchase at Rs. 1,36,000 of which 40% is to be paid on signing the contract and the balance reckoning compound interest @ 9% p.a. is to be paid in 12 equal annual instalments. Find the amount of each instalment.

2. To endow a scholarship of Rs. 25,000 per year, what sum should be set aside in a bank giving 8% p.a. compound interest?

3. A sinking fund is created for replacement of a machine after 25 years whose present cost is Rs. 80,000. What sum of money should be provided out of profit every year for the fund if the investment can earn 10% p.a. compound interest and the cost of the machine at the time of replacement be 20% more than the present value?

**2018**

1. What do you mean by annuity?

2. To endow a scholarship of Rs. 5,000 per year, what sum should be set aside in a bank giving 10% p.a. compound interest?

3. To pay debenture of Rs. 1,20,000 a company sets aside a sum of Rs. 10,000 annually to accumulate at 4% p.a. compound interest for 10 years. Find the surplus after paying off the debenture.Â (Given log1.04 = 0.01703 and antilog 0.01703 = 1.4801)

4. A person borrowed Rs. 12,500 at 5% p.a. compound interest and agreed to repay the sum together with interest in 5 equal annual installments. What will be the amount of each installment? **2017**

1. Deepak buys a motorcycle by paying Rs. 10,000 in cash and the balance in 20 equal annual installments of Rs. 8,000 each. If the rate of compound interest be considered at 16%, how much he should have paid had he purchased the motorcycle in cash?

2. The value of a machine depreciates every year @ 10% CI. If the value of the machine after 4 years becomes Rs. 1,31,220, what was its original value?

3. A flat was bought at Rs. 1,36,000 of which 40% is to be paid on signing the contract and the balance reckoning compound interest @ 9% p.a. is to be paid in 12 equal annual installments. Find the amount of each installment.

**2016**

1. What do you mean by a sinking fund?

2. What do you mean by a deferred annuity?

3. A man deposited Rs. 5,000 at the end of every year in a bank at 6% p.a. rate of compound interest. What sum will he receive from the bank at the end of 10 years?

4. The cost of a machine is Rs. 1,00,000 and its life period is estimated to be 20 years. After 20 years the machine is expected at cost 20% more over the present value. Find the sum to be invested every year at 5% p.a. in compound interest for 20 years to replace the machine.

**2015**

1. What do you mean by a deferred annuity?

2. Deepak buys a motorcycle by paying Rs. 10,000 in cash and the balance in 20 equal annual installments of Rs. 8,000 each. If the rate of compound interest be considered at 16%, how much he should have paid had he purchased the motorcycle in cash?

3. A flat was bought at Rs. 1,36,000 of which 40% is to be paid on signing the contract and the balance reckoning compound interest @ 9% p.a. is to be paid in 12 equal annual installments. Find the amount of each installment.

**2014**

1. Write the definition of immediate annuity and annuity due.

2. A person agreed to purchase a machine at Rs. 3,00,000 with condition that he will pay Rs. 2,00,000 at the time of purchase and the remaining amount together with 12% interest compound half-yearly in 20 equal half-yearly instalments. What will be the amount of each instalment? (Given log 10.6 = 1.0253 and log 31.19 = 1.494).

3. What is the present value of a perpetuity of Rs. 5,000 p.a. at 2.5%?

4. A machine cost Rs. 1,00,000 and its life period is 12 years. The estimated scrape value and the increase in the cost of machine after 12 years are Rs. 30,000 and 20% respectively. Find the amount of each equal annual instalment to be deposited at 12% p.a. compound interest to replace the machine after 12 years.

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