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Dear sir
looking at the 30m annuity. it specifically states paid at the beginning of the year so is the annuity not calculated as 3 years plus 1which is 2.577 + 1 which gives a payment of 8387 and not 9058??
You have misread the question.
It does not say that the interest is paid at the beginning of the year. It says that the interest is payable annually, based on the amount outstanding at the start of the year.
You would never take a loan and then pay interest immediately – you pay interest at the end of each year, but it is calculated on what was owed at the start of the year.
No, but you would make a capital payment upfront which this one is. But rereading the question i see you are right
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