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 = ?€10 000€10 000€10 000…

A foundation wants to pay a prize of €10 000 at the end of every year, forever. The fund earns 2% interest per year. How much must be invested today? Find PV.

A = €10 000i = 2%
PV = €
2.Easy
years0123…11€1 000FV = ?

You deposit €1 000 in a savings account that pays 3% interest per year, compounded annually. How much is in the account after 11 years? Find the future value FV.

PV = €1 000i = 3%n = 11
FV = €
3.Medium
periods01211 + EAR = ?17.5% / 2

A credit card charges a nominal interest rate of 17.5% per year, compounded semi-annually. Find the effective annual rate EAR in percent.

r = 17.5%m = 2
EAR = %
4.Medium
years0123…17PV = ?€8 000€8 000€8 000€8 000

An annuity pays €8 000 at the end of each year for 17 years. The interest rate is 7% per year. Find the present value PV of the annuity.

A = €8 000i = 7%n = 17
PV = €
5.Hard
months0123…192€500€500€500FV = ?

You save €500 at the end of every month for 16 years. The account pays 2.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €5002.4% / 12N = 192
FV = €
6.Hard
months0123…324€300€300€300FV = ?

You save €300 at the end of every month for 27 years. The account pays 2.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €3002.4% / 12N = 324
FV = €

Answer key

  1. 1. PV = 500000 €
  2. 2. FV = 1384 €
  3. 3. EAR = 18.27 %
  4. 4. PV = 78106 €
  5. 5. FV = 116896 €
  6. 6. FV = 136572 €

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