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 €10 000 in a savings account that pays 2% interest per year, compounded annually. How much is in the account after 5 years? Find the future value FV.

PV = €10 000i = 2%n = 5

FV = €

2.Easy

You deposit €4 000 at 6% 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 €10 000?

PV = €4 000FV = €10 000i = 6%

n = years

3.Medium

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

r = 19.5%m = 4

EAR = %

4.Medium

You need €5 000 in 2 years. An account pays 3.6% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €5 0003.6% / 12n = 2

PV = €

5.Hard

You borrow €20 000 at 4.8% per year, compounded monthly, and repay €600 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 = €20 000A = €6004.8% / 12

N = payments

6.Hard

You deposit €1 000 at the start of every year for 20 years, the first deposit today. The account pays 5% per year. How much is in the account at the end of year 20? Find FV.

A = €1 000i = 5%n = 20

FV = €

Answer key

1. FV = 11041 €
2. n = 16 years
3. EAR = 20.97 %
4. PV = 4653 €
5. N = 36 payments
6. FV = 34719 €

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