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

You deposit €1 500 in a savings account that pays 7% interest per year, compounded annually. How much is in the account after 12 years? Find the future value FV.

PV = €1 500i = 7%n = 12

FV = €

2.Easy

An investment of €5 000 grows to €8 780 in 11 years with annual compounding. Find the annual interest rate i in percent.

PV = €5 000FV = €8 780n = 11

i = %

3.Medium

A credit card charges a nominal interest rate of 19.5% per year, compounded semi-annually. Find the effective annual rate EAR in percent.

r = 19.5%m = 2

EAR = %

4.Medium

An annuity pays €8 000 at the end of each year for 8 years. The interest rate is 4% per year. Find the present value PV of the annuity.

A = €8 000i = 4%n = 8

PV = €

5.Hard

You deposit €6 000 at the start of every year for 27 years, the first deposit today. The account pays 5% per year. How much is in the account at the end of year 27? Find FV.

A = €6 000i = 5%n = 27

FV = €

6.Hard

You borrow €20 000 at 6% per year, compounded monthly, and repay €475 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 = €20 000A = €4756% / 12

N = payments

Answer key

1. FV = 3378 €
2. i = 5.252 %
3. EAR = 20.45 %
4. PV = 53862 €
5. FV = 344415 €
6. N = 48 payments

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