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
years012345€1 000€1 310

An investment of €1 000 grows to €1 310 in 5 years with annual compounding. Find the annual interest rate i in percent.

PV = €1 000FV = €1 310n = 5
i = %
2.Easy
years0123…9PV = ?€5 000€5 000€5 000…

A foundation wants to pay a prize of €5 000 at the end of every year, forever. The fund earns 4% interest per year. How much must be invested today? Find PV.

A = €5 000i = 4%
PV = €
3.Medium
periods0123…36511 + EAR = ?19.5% / 365

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

r = 19.5%m = 365
EAR = %
4.Medium
years012345€2 000FV = ?

You invest €2 000 at a nominal rate of 2% per year, compounded monthly. Find the value FV of the investment after 5 years.

PV = €2 0002% / 12n = 5
FV = €
5.Hard
years0123…26€3 000€3 000€3 000FV = ?

You deposit €3 000 at the start of every year for 26 years, the first deposit today. The account pays 8% per year. How much is in the account at the end of year 26? Find FV.

A = €3 000i = 8%n = 26
FV = €
6.Hard
months01…204…300€300 000AB = ?A6% / 12

A mortgage of €300 000 is repaid with equal monthly payments over 25 years at 6% per year, compounded monthly. How much is still owed just after the payment at the end of year 17? Find the outstanding balance B.

P = €300 0006% / 12N = 300k = 204
B = €

Answer key

  1. 1. i = 5.549 %
  2. 2. PV = 125000 €
  3. 3. EAR = 21.52 %
  4. 4. FV = 2210 €
  5. 5. FV = 259052 €
  6. 6. B = 147085 €

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