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€5 000

You deposit €2 000 at 5% 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 €5 000?

PV = €2 000FV = €5 000i = 5%
n = years
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 6% interest per year. How much must be invested today? Find PV.

A = €1 000i = 6%
PV = €
3.Medium
periods01211 + EAR = ?18% / 2

A credit card charges a nominal interest rate of 18% per year, compounded semi-annually. Find the effective annual rate EAR in percent.

r = 18%m = 2
EAR = %
4.Medium
years0123…13PV = ?€1 500€1 500€1 500€1 500

An annuity pays €1 500 at the end of each year for 13 years. The interest rate is 4% per year. Find the present value PV of the annuity.

A = €1 500i = 4%n = 13
PV = €
5.Hard
months0123…60€15 000A?AAA

A loan of €15 000 is repaid with equal monthly payments over 5 years. The interest rate is 4.8% per year, compounded monthly. Find the monthly payment A.

P = €15 0004.8% / 12N = 60
A = €
6.Hard
months0123…144€500€500€500FV = ?

You save €500 at the end of every month for 12 years. The account pays 4.8% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €5004.8% / 12N = 144
FV = €

Answer key

  1. 1. n = 19 years
  2. 2. PV = 16667 €
  3. 3. EAR = 18.81 %
  4. 4. PV = 14978 €
  5. 5. A = 281.7 €
  6. 6. FV = 97108 €

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