• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

September 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

Annual Cash Value of Annuity Income

Forums › Ask CIMA Tutor Forums › Ask CIMA BA1 Tutor Forums › Annual Cash Value of Annuity Income

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 9, 2021 at 7:57 am #630872
    aaronlieu
    Participant
    • Topics: 9
    • Replies: 9
    • ☆

    Hi, I am looking for explanation for this question:

    An amount of $65,000 is invested today, providing an annuity income for the next ten years, starting in 1 year.

    If the interest rate is 7%, what, to the nearest $10, will be the annual cash value of the annuity income? (From the annuity table, the rate is 7.024%)

    The answer is $9,250.

    August 9, 2021 at 4:31 pm #630907
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10606
    • ☆☆☆☆☆

    If you had a mortgage of 65,000 and were paying 7% interest and repaying the loan, the equal annual amount you pay is:

    65,000 ÷ cumumalive 10 year 7% factor =65,000 ÷ 7.024 = 9250.

    Just turn it round and e tgemortgage provider receiving that amount each year.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • zee21 on Basic group structures – Impairment – ACCA (SBR) lectures
  • Moliselumka on ACCA BT Chapter 7 – Accountancy, accounts and auditors – Questions
  • John Moffat on Objectives of organisations – ACCA (AFM) lectures
  • Vadiraj75 on Objectives of organisations – ACCA (AFM) lectures
  • Anonymously on Chapter 8 Employment Income TX-UK FA2023

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in