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

You deposit €2 500 in a savings account that pays 6% interest per year, compounded annually. How much is in the account after 12 years? Find the future value FV.

PV = €2 500i = 6%n = 12

FV = €

2.Easy

You deposit €1 000 in a savings account that pays 6% interest per year, compounded annually. How much is in the account after 8 years? Find the future value FV.

PV = €1 000i = 6%n = 8

FV = €

3.Medium

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

r = 25%m = 4

EAR = %

4.Medium

You need €10 000 in 2 years. An account pays 4.8% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €10 0004.8% / 4n = 2

PV = €

5.Hard

A loan of €30 000 is repaid with equal monthly payments over 3 years at 2.4% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €30 0002.4% / 12N = 36

I = €

6.Hard

A mortgage of €250 000 is repaid with equal monthly payments over 20 years at 3.6% per year, compounded monthly. How much is still owed just after the payment at the end of year 15? Find the outstanding balance B.

P = €250 0003.6% / 12N = 240k = 180

B = €

Answer key

1. FV = 5030 €
2. FV = 1594 €
3. EAR = 27.44 %
4. PV = 9090 €
5. I = 1123 €
6. B = 80211 €

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