Time value of money worksheet with answers

Free printable Time value of money worksheet: 6 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

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Name: ____________________   Date: ____________

1.Easy
years0123…10€10 000€14 800

An investment of €10 000 grows to €14 800 in 10 years with annual compounding. Find the annual interest rate i in percent.

PV = €10 000FV = €14 800n = 10
i = %
2.Easy
years0123…9PV = ?€1 000€1 000€1 000…

A foundation wants to pay a prize of €1 000 at the end of every year, forever. The fund earns 4% interest per year. How much must be invested today? Find PV.

A = €1 000i = 4%
PV = €
3.Medium
periods01211 + EAR = ?25% / 2

A credit card charges a nominal interest rate of 25% per year, compounded semi-annually. Find the effective annual rate EAR in percent.

r = 25%m = 2
EAR = %
4.Medium
years01234PV = ?€5 000

You need €5 000 in 4 years. An account pays 3.6% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €5 0003.6% / 4n = 4
PV = €
5.Hard
months0123…360€200 000A?AAA

A loan of €200 000 is repaid with equal monthly payments over 30 years. The interest rate is 6% per year, compounded monthly. Find the monthly payment A.

P = €200 0006% / 12N = 360
A = €
6.Hard
months0123…N = ?€15 000€300€300€300€3006% / 12

You borrow €15 000 at 6% per year, compounded monthly, and repay €300 at the end of every month. How many months does it take until the loan is repaid (the last payment may be smaller)? Give the number of payments N.

P = €15 000A = €3006% / 12
N = payments

Answer key

  1. 1. i = 3.998 %
  2. 2. PV = 25000 €
  3. 3. EAR = 26.56 %
  4. 4. PV = 4332 €
  5. 5. A = 1199 €
  6. 6. N = 58 payments

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