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.

New worksheet Practise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________ Date: ____________

1.Easy

You deposit €2 500 in a savings account that pays 5% interest per year, compounded annually. How much is in the account after 9 years? Find the future value FV.

PV = €2 500i = 5%n = 9

FV = €

2.Easy

A foundation wants to pay a prize of €12 000 at the end of every year, forever. The fund earns 2.5% interest per year. How much must be invested today? Find PV.

A = €12 000i = 2.5%

PV = €

3.Medium

An annuity pays €8 000 at the end of each year for 18 years. The interest rate is 3% per year. Find the present value PV of the annuity.

A = €8 000i = 3%n = 18

PV = €

4.Medium

A credit card charges a nominal interest rate of 17.5% per year, compounded monthly. Find the effective annual rate EAR in percent.

r = 17.5%m = 12

EAR = %

5.Hard

You save €200 at the end of every month for 8 years. The account pays 6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2006% / 12N = 96

FV = €

6.Hard

You borrow €8 000 at 4.2% per year, compounded monthly, and repay €150 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 = €8 000A = €1504.2% / 12

N = payments

Answer key

1. FV = 3878 €
2. PV = 480000 €
3. PV = 110028 €
4. EAR = 18.97 %
5. FV = 24566 €
6. N = 60 payments

Full step-by-step solutions: practise this topic on examproblems.com.