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
years012€1 000FV = ?

You deposit €1 000 in a savings account that pays 4% interest per year, compounded annually. How much is in the account after 2 years? Find the future value FV.

PV = €1 000i = 4%n = 2
FV = €
2.Easy
years0123…8€5 000€9 430

An investment of €5 000 grows to €9 430 in 8 years with annual compounding. Find the annual interest rate i in percent.

PV = €5 000FV = €9 430n = 8
i = %
3.Medium
periods01211 + EAR = ?18% / 2

A credit card charges a nominal interest rate of 18% per year, compounded semi-annually. Find the effective annual rate EAR in percent.

r = 18%m = 2
EAR = %
4.Medium
years0123…9€20 000FV = ?

You invest €20 000 at a nominal rate of 2% per year, compounded monthly. Find the value FV of the investment after 9 years.

PV = €20 0002% / 12n = 9
FV = €
5.Hard
months0123…36A?AA€25 000

You want €25 000 in 3 years. You save the same amount at the end of every month in an account paying 3% per year, compounded monthly. Find the monthly deposit A.

FV = €25 0003% / 12N = 36
A = €
6.Hard
months0123…360€150 000A?AAA

A loan of €150 000 is repaid with equal monthly payments over 30 years. The interest rate is 4.2% per year, compounded monthly. Find the monthly payment A.

P = €150 0004.2% / 12N = 360
A = €

Answer key

  1. 1. FV = 1082 €
  2. 2. i = 8.254 %
  3. 3. EAR = 18.81 %
  4. 4. FV = 23941 €
  5. 5. A = 664.5 €
  6. 6. A = 733.5 €

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