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…11PV = ?€15 000

You will receive €15 000 in 11 years. The interest rate is 4% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €15 000i = 4%n = 11
PV = €
2.Easy
years0123…12€10 000FV = ?

You deposit €10 000 in a savings account that pays 2.5% interest per year, compounded annually. How much is in the account after 12 years? Find the future value FV.

PV = €10 000i = 2.5%n = 12
FV = €
3.Medium
periods0123…1211 + EAR = ?19.5% / 12

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

r = 19.5%m = 12
EAR = %
4.Medium
years012PV = ?€40 000

You need €40 000 in 2 years. An account pays 5% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €40 0005% / 4n = 2
PV = €
5.Hard
months0123…36€20 000A?AAA

A loan of €20 000 is repaid with equal monthly payments over 3 years. The interest rate is 3.6% per year, compounded monthly. Find the monthly payment A.

P = €20 0003.6% / 12N = 36
A = €
6.Hard
months01…108…360€150 000AB = ?A7.2% / 12

A mortgage of €150 000 is repaid with equal monthly payments over 30 years at 7.2% per year, compounded monthly. How much is still owed just after the payment at the end of year 9? Find the outstanding balance B.

P = €150 0007.2% / 12N = 360k = 108
B = €

Answer key

  1. 1. PV = 9744 €
  2. 2. FV = 13449 €
  3. 3. EAR = 21.34 %
  4. 4. PV = 36216 €
  5. 5. A = 586.9 €
  6. 6. B = 132115 €

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