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 = ?€10 000€10 000€10 000…

A foundation wants to pay a prize of €10 000 at the end of every year, forever. The fund earns 2% interest per year. How much must be invested today? Find PV.

A = €10 000i = 2%
PV = €
2.Easy
years0123…8PV = ?€20 000

You will receive €20 000 in 8 years. The interest rate is 6% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €20 000i = 6%n = 8
PV = €
3.Medium
years0123456PV = ?€15 000

You need €15 000 in 6 years. An account pays 3% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €15 0003% / 12n = 6
PV = €
4.Medium
periods0123411 + EAR = ?18% / 4

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

r = 18%m = 4
EAR = %
5.Hard
months0123…36€8 000A?AAA

A loan of €8 000 is repaid with equal monthly payments over 3 years. The interest rate is 6% per year, compounded monthly. Find the monthly payment A.

P = €8 0006% / 12N = 36
A = €
6.Hard
months0123…156€300€300€300FV = ?

You save €300 at the end of every month for 13 years. The account pays 5.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €3005.4% / 12N = 156
FV = €

Answer key

  1. 1. PV = 500000 €
  2. 2. PV = 12548 €
  3. 3. PV = 12532 €
  4. 4. EAR = 19.25 %
  5. 5. A = 243.4 €
  6. 6. FV = 67641 €

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