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 = ?€1 000€1 000€1 000…

A foundation wants to pay a prize of €1 000 at the end of every year, forever. The fund earns 2% interest per year. How much must be invested today? Find PV.

A = €1 000i = 2%
PV = €
2.Easy
years0123…10€5 000FV = ?

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

PV = €5 000i = 5%n = 10
FV = €
3.Medium
periods0123…1211 + EAR = ?19.5% / 12

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

r = 19.5%m = 12
EAR = %
4.Medium
periods0123411 + EAR = ?21% / 4

A credit card charges a nominal interest rate of 21% per year, compounded quarterly. Find the effective annual rate EAR in percent.

r = 21%m = 4
EAR = %
5.Hard
months0123…48€10 000AAAA4.8% / 12, I = ?

A loan of €10 000 is repaid with equal monthly payments over 4 years at 4.8% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €10 0004.8% / 12N = 48
I = €
6.Hard
months0123…36€8 000A?AAA

A loan of €8 000 is repaid with equal monthly payments over 3 years. The interest rate is 4.2% per year, compounded monthly. Find the monthly payment A.

P = €8 0004.2% / 12N = 36
A = €

Answer key

  1. 1. PV = 50000 €
  2. 2. FV = 8144 €
  3. 3. EAR = 21.34 %
  4. 4. EAR = 22.71 %
  5. 5. I = 1011 €
  6. 6. A = 236.9 €

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