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
years012n = ?€4 000€6 000

You deposit €4 000 at 3% 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 €6 000?

PV = €4 000FV = €6 000i = 3%
n = years
2.Easy
years01234€10 000€11 260

An investment of €10 000 grows to €11 260 in 4 years with annual compounding. Find the annual interest rate i in percent.

PV = €10 000FV = €11 260n = 4
i = %
3.Medium
years0123…8€8 000FV = ?

You invest €8 000 at a nominal rate of 3.6% per year, compounded monthly. Find the value FV of the investment after 8 years.

PV = €8 0003.6% / 12n = 8
FV = €
4.Medium
periods0123…36511 + EAR = ?22% / 365

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

r = 22%m = 365
EAR = %
5.Hard
months0123…48€10 000AAAA3.6% / 12, I = ?

A loan of €10 000 is repaid with equal monthly payments over 4 years at 3.6% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €10 0003.6% / 12N = 48
I = €
6.Hard
years0123…30€2 500€2 500€2 500FV = ?

You deposit €2 500 at the start of every year for 30 years, the first deposit today. The account pays 5% per year. How much is in the account at the end of year 30? Find FV.

A = €2 500i = 5%n = 30
FV = €

Answer key

  1. 1. n = 14 years
  2. 2. i = 3.011 %
  3. 3. FV = 10665 €
  4. 4. EAR = 24.6 %
  5. 5. I = 752.2 €
  6. 6. FV = 174402 €

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