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 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 €30 000?

PV = €10 000FV = €30 000i = 3%

n = years

2.Easy

You will receive €50 000 in 10 years. The interest rate is 6% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €50 000i = 6%n = 10

PV = €

3.Medium

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

r = 17.5%m = 4

EAR = %

4.Medium

You need €25 000 in 2 years. An account pays 5% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €25 0005% / 4n = 2

PV = €

5.Hard

You borrow €15 000 at 7.2% per year, compounded monthly, and repay €300 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 = €15 000A = €3007.2% / 12

N = payments

6.Hard

You save €50 at the end of every month for 21 years. The account pays 7.2% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €507.2% / 12N = 252

FV = €

Answer key

1. n = 38 years
2. PV = 27920 €
3. EAR = 18.68 %
4. PV = 22635 €
5. N = 60 payments
6. FV = 29295 €

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