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€4 000€4 920

An investment of €4 000 grows to €4 920 in 6 years with annual compounding. Find the annual interest rate i in percent.

PV = €4 000FV = €4 920n = 6
i = %
2.Easy
years0123…8€1 500FV = ?

You deposit €1 500 in a savings account that pays 2% interest per year, compounded annually. How much is in the account after 8 years? Find the future value FV.

PV = €1 500i = 2%n = 8
FV = €
3.Medium
years0123456€12 000FV = ?

You invest €12 000 at a nominal rate of 2% per year, compounded quarterly. Find the value FV of the investment after 6 years.

PV = €12 0002% / 4n = 6
FV = €
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…360€200 000A?AAA

A loan of €200 000 is repaid with equal monthly payments over 30 years. The interest rate is 3.6% per year, compounded monthly. Find the monthly payment A.

P = €200 0003.6% / 12N = 360
A = €
6.Hard
months01…72…300€250 000AB = ?A6% / 12

A mortgage of €250 000 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 6? Find the outstanding balance B.

P = €250 0006% / 12N = 300k = 72
B = €

Answer key

  1. 1. i = 3.51 %
  2. 2. FV = 1757 €
  3. 3. FV = 13526 €
  4. 4. EAR = 19.25 %
  5. 5. A = 909.3 €
  6. 6. B = 218828 €

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