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
years012n = ?€2 000€4 000

You deposit €2 000 at 6% interest per year, compounded annually (interest is added at the end of each year). After how many whole years n does the balance first reach at least €4 000?

PV = €2 000FV = €4 000i = 6%
n = years
2.Easy
years0123…9€2 000FV = ?

You deposit €2 000 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 9 years? Find the future value FV.

PV = €2 000i = 3.5%n = 9
FV = €
3.Medium
years0123456PV = ?€5 000

You need €5 000 in 6 years. An account pays 3.6% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €5 0003.6% / 12n = 6
PV = €
4.Medium
periods0123…1211 + EAR = ?20% / 12

A credit card charges a nominal interest rate of 20% per year, compounded monthly. Find the effective annual rate EAR in percent.

r = 20%m = 12
EAR = %
5.Hard
months0123…36€12 000A?AAA

A loan of €12 000 is repaid with equal monthly payments over 3 years. The interest rate is 2.4% per year, compounded monthly. Find the monthly payment A.

P = €12 0002.4% / 12N = 36
A = €
6.Hard
months0123…60€8 000A?AAA

A loan of €8 000 is repaid with equal monthly payments over 5 years. The interest rate is 4.2% per year, compounded monthly. Find the monthly payment A.

P = €8 0004.2% / 12N = 60
A = €

Answer key

  1. 1. n = 12 years
  2. 2. FV = 2726 €
  3. 3. PV = 4030 €
  4. 4. EAR = 21.94 %
  5. 5. A = 345.8 €
  6. 6. A = 148.1 €

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