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
years0123…9PV = ?€2 000€2 000€2 000…

A foundation wants to pay a prize of €2 000 at the end of every year, forever. The fund earns 5% interest per year. How much must be invested today? Find PV.

A = €2 000i = 5%
PV = €
2.Easy
years01234€8 000€9 540

An investment of €8 000 grows to €9 540 in 4 years with annual compounding. Find the annual interest rate i in percent.

PV = €8 000FV = €9 540n = 4
i = %
3.Medium
periods0123…36511 + EAR = ?16% / 365

A credit card charges a nominal interest rate of 16% per year, compounded daily. Find the effective annual rate EAR in percent.

r = 16%m = 365
EAR = %
4.Medium
years0123…8PV = ?€1 000€1 000€1 000€1 000

An annuity pays €1 000 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 = €1 000i = 4%n = 8
PV = €
5.Hard
months0123…360€150€150€150FV = ?

You save €150 at the end of every month for 30 years. The account pays 3.6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1503.6% / 12N = 360
FV = €
6.Hard
months0123…60€15 000AAAA7.2% / 12, I = ?

A loan of €15 000 is repaid with equal monthly payments over 5 years at 7.2% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €15 0007.2% / 12N = 60
I = €

Answer key

  1. 1. PV = 40000 €
  2. 2. i = 4.5 %
  3. 3. EAR = 17.35 %
  4. 4. PV = 6733 €
  5. 5. FV = 96996 €
  6. 6. I = 2906 €

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