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
years0123456€2 000€2 460

An investment of €2 000 grows to €2 460 in 6 years with annual compounding. Find the annual interest rate i in percent.

PV = €2 000FV = €2 460n = 6
i = %
2.Easy
years012345€7 500FV = ?

You deposit €7 500 in a savings account that pays 4.5% interest per year, compounded annually. How much is in the account after 5 years? Find the future value FV.

PV = €7 500i = 4.5%n = 5
FV = €
3.Medium
years0123…14PV = ?€5 000€5 000€5 000€5 000

An annuity pays €5 000 at the end of each year for 14 years. The interest rate is 7% per year. Find the present value PV of the annuity.

A = €5 000i = 7%n = 14
PV = €
4.Medium
periods0123411 + EAR = ?16% / 4

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

r = 16%m = 4
EAR = %
5.Hard
months0123…N = ?€25 000€375€375€375€3755.4% / 12

You borrow €25 000 at 5.4% per year, compounded monthly, and repay €375 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 = €25 000A = €3755.4% / 12
N = payments
6.Hard
months0123…72€150€150€150FV = ?

You save €150 at the end of every month for 6 years. The account pays 4.2% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1504.2% / 12N = 72
FV = €

Answer key

  1. 1. i = 3.51 %
  2. 2. FV = 9346 €
  3. 3. PV = 43727 €
  4. 4. EAR = 16.99 %
  5. 5. N = 80 payments
  6. 6. FV = 12258 €

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