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AAFM GLO_CWM_LVL_1 Exam - Topic 1 Question 121 Discussion

A 12 year annual annuity of Rs. 10000 will begin 8 years hence (the first payment occurs at the end of 8 years). What is the present value of this annuity if the discount rate is 14 percent?
B) Rs. 22620.63
A) Rs. 22898.12
C) C.Rs. 23456.78
D) D.Rs. 22124.95

AAFM GLO_CWM_LVL_1 Exam - Topic 1 Question 121 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam
Question #: 121
Topic #: 1
[All GLO_CWM_LVL_1 Questions]

A 12 year annual annuity of Rs. 10000 will begin 8 years hence (the first payment occurs at the end of 8 years). What is the present value of this annuity if the discount rate is 14 percent?

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Suggested Answer: B

by Alline at Jul 02, 2026, 03:31 AM

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Carissa
3 days ago
Same here! Timing is everything in these problems.
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Silvana
9 days ago
I just hope I remember the formula!
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Vincenza
14 days ago
I’m leaning towards B. It feels right with the discount rate.
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Gail
19 days ago
I think it's A. The calculations seem to fit.
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Carissa
24 days ago
Yeah, the annuity part is confusing.
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Silvana
29 days ago
This question is tricky!
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Rory
1 month ago
I thought annuities were more complicated than this!
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Glory
1 month ago
14% is a solid discount rate for this scenario.
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Lucina
1 month ago
Wait, how can it be that high? Seems off.
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Wei
2 months ago
I think it's definitely option A, looks right to me!
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Hyman
2 months ago
The present value calculation involves discounting future cash flows.
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Cecilia
2 months ago
I feel like the answer should be close to Rs. 22,000 based on what we practiced, but I can't remember the exact calculations we did.
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Benton
2 months ago
I’m a bit confused about when to apply the discount rate. Is it just for the 12 payments or do we discount the whole thing back to the present?
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Mitsue
2 months ago
I think we need to find the present value of the annuity first and then discount it back to today. The 14% rate is pretty high, though!
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Tonette
3 months ago
I remember we did a similar problem in class about calculating present value for an annuity, but I’m not sure about the exact formula to use here.
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