Time Value Of Money Financial Math Worksheet With Answer Key

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Name ________________________________ Date ________
TIME VALUE OF MONEY
Directions: As a group, use a financial function calculator, a
spreadsheet program with time value-of-money functions, or financial
function calculators on the Internet to solve the following problems.
1.
Diane invests $500 today in an account earning 7%. How much will it
be worth in 5 years? _____ 10 years? _____ 20 years? _____
2.
Same facts as #1, except Diane finds an account earning 10%. How
much will it be worth in 5 years? _____ 10 years? _____
20 years? _____
3.
Elaine needs to save up $4,000 in 4 years. If she can set aside $1,000
today, what rate of return does she need on her account? _____
4.
Same facts as in #3, except now Elaine can set aside $50 per month.
What rate of return does she need on her account? _____
5.
Frank wants to buy a $10,000 car. The car dealer offers him financing
of 60 payments at 9% interest. What will his payments be? _____
6.
Same facts as #5, except the dealer also offers 48 payments at 8%.
Now what will Frank’s payments be? _____
7.
Gayle has a credit card with a $500 balance on it and a 19% interest
rate. If he wants to pay off his card in two years, what will his monthly
payments be? _____ How much interest will he pay? _____
8.
Same facts as #7, except now the balance is $2,500. What will Gayle’s
monthly payments be? _____ How much interest will he pay? _____

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