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 €5 000 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 11 years? Find the future value FV.

PV = €5 000i = 3.5%n = 11

FV = €

2.Easy

You deposit €4 000 at 5% interest per year, compounded annually (interest is added at the end of each year). After how many whole years n does the balance first reach at least €12 000?

PV = €4 000FV = €12 000i = 5%

n = years

3.Medium

You need €25 000 in 4 years. An account pays 3.6% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €25 0003.6% / 12n = 4

PV = €

4.Medium

A credit card charges a nominal interest rate of 22% per year, compounded monthly. Find the effective annual rate EAR in percent.

r = 22%m = 12

EAR = %

5.Hard

You borrow €15 000 at 2.4% per year, compounded monthly, and repay €650 at the end of every month. How many months does it take until the loan is repaid (the last payment may be smaller)? Give the number of payments N.

P = €15 000A = €6502.4% / 12

N = payments

6.Hard

A loan of €250 000 is repaid with equal monthly payments over 30 years. The interest rate is 7.2% per year, compounded monthly. Find the monthly payment A.

P = €250 0007.2% / 12N = 360

A = €

Answer key

1. FV = 7300 €
2. n = 23 years
3. PV = 21652 €
4. EAR = 24.36 %
5. N = 24 payments
6. A = 1697 €

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