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
years01234567€8 000€12 230

An investment of €8 000 grows to €12 230 in 7 years with annual compounding. Find the annual interest rate i in percent.

PV = €8 000FV = €12 230n = 7
i = %
2.Easy
years0123…9€2 000FV = ?

You deposit €2 000 in a savings account that pays 4.5% interest per year, compounded annually. How much is in the account after 9 years? Find the future value FV.

PV = €2 000i = 4.5%n = 9
FV = €
3.Medium
periods01211 + EAR = ?21% / 2

A credit card charges a nominal interest rate of 21% per year, compounded semi-annually. Find the effective annual rate EAR in percent.

r = 21%m = 2
EAR = %
4.Medium
periods0123…1211 + EAR = ?25% / 12

A credit card charges a nominal interest rate of 25% per year, compounded monthly. Find the effective annual rate EAR in percent.

r = 25%m = 12
EAR = %
5.Hard
months0123…312€150€150€150FV = ?

You save €150 at the end of every month for 26 years. The account pays 3.6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1503.6% / 12N = 312
FV = €
6.Hard
months0123…48€15 000A?AAA

A loan of €15 000 is repaid with equal monthly payments over 4 years. The interest rate is 7.2% per year, compounded monthly. Find the monthly payment A.

P = €15 0007.2% / 12N = 48
A = €

Answer key

  1. 1. i = 6.251 %
  2. 2. FV = 2972 €
  3. 3. EAR = 22.1 %
  4. 4. EAR = 28.07 %
  5. 5. FV = 77310 €
  6. 6. A = 360.6 €

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