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
years01234€1 000€1 290

An investment of €1 000 grows to €1 290 in 4 years with annual compounding. Find the annual interest rate i in percent.

PV = €1 000FV = €1 290n = 4
i = %
2.Easy
years0123…10PV = ?€20 000

You will receive €20 000 in 10 years. The interest rate is 4% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €20 000i = 4%n = 10
PV = €
3.Medium
periods0123411 + EAR = ?15% / 4

A credit card charges a nominal interest rate of 15% per year, compounded quarterly. Find the effective annual rate EAR in percent.

r = 15%m = 4
EAR = %
4.Medium
years0123…8PV = ?€50 000

You need €50 000 in 8 years. An account pays 3% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €50 0003% / 12n = 8
PV = €
5.Hard
months0123…108€200€200€200FV = ?

You save €200 at the end of every month for 9 years. The account pays 3.6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2003.6% / 12N = 108
FV = €
6.Hard
months0123…300€250 000A?AAA

A loan of €250 000 is repaid with equal monthly payments over 25 years. The interest rate is 6% per year, compounded monthly. Find the monthly payment A.

P = €250 0006% / 12N = 300
A = €

Answer key

  1. 1. i = 6.573 %
  2. 2. PV = 13511 €
  3. 3. EAR = 15.87 %
  4. 4. PV = 39343 €
  5. 5. FV = 25465 €
  6. 6. A = 1611 €

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