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.

New worksheet Practise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________ Date: ____________

1.Easy

You deposit €5 000 at 8% 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 €7 500?

PV = €5 000FV = €7 500i = 8%

n = years

2.Easy

You deposit €4 000 in a savings account that pays 4.5% interest per year, compounded annually. How much is in the account after 11 years? Find the future value FV.

PV = €4 000i = 4.5%n = 11

FV = €

3.Medium

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

A property is expected to earn net rent of €2 000 next year. The rent is expected to grow by 3% per year forever. The required return is 9% per year. Find the value PV of the property today.

C₁ = €2 000g = 3%r = 9%

PV = €

5.Hard

You borrow €15 000 at 4.8% per year, compounded monthly, and repay €300 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 = €3004.8% / 12

N = payments

6.Hard

A loan of €20 000 is repaid with equal monthly payments over 5 years at 5.4% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €20 0005.4% / 12N = 60

I = €

Answer key

1. n = 6 years
2. FV = 6491 €
3. EAR = 18.81 %
4. PV = 33333 €
5. N = 56 payments
6. I = 2866 €

Full step-by-step solutions: practise this topic on examproblems.com.