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
years0123…9PV = ?€5 000€5 000€5 000…

A foundation wants to pay a prize of €5 000 at the end of every year, forever. The fund earns 3% interest per year. How much must be invested today? Find PV.

A = €5 000i = 3%
PV = €
2.Easy
years012n = ?€2 500€7 500

You deposit €2 500 at 9% 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 = €2 500FV = €7 500i = 9%
n = years
3.Medium
years0123…10€1 000FV = ?

You invest €1 000 at a nominal rate of 3.6% per year, compounded quarterly. Find the value FV of the investment after 10 years.

PV = €1 0003.6% / 4n = 10
FV = €
4.Medium
periods01211 + EAR = ?25% / 2

A credit card charges a nominal interest rate of 25% per year, compounded semi-annually. Find the effective annual rate EAR in percent.

r = 25%m = 2
EAR = %
5.Hard
months0123…168€50€50€50FV = ?

You save €50 at the end of every month for 14 years. The account pays 3.6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €503.6% / 12N = 168
FV = €
6.Hard
months0123…36€20 000AAAA3% / 12, I = ?

A loan of €20 000 is repaid with equal monthly payments over 3 years at 3% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €20 0003% / 12N = 36
I = €

Answer key

  1. 1. PV = 166667 €
  2. 2. n = 13 years
  3. 3. FV = 1431 €
  4. 4. EAR = 26.56 %
  5. 5. FV = 10901 €
  6. 6. I = 938.5 €

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