Time Value Of Money Financial Math Worksheet With Answer Key Page 2
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1
2
3Time Value of Money KEY
1.
Diane invests $500 today in an account earning 7%. How much will it be worth in 5
years?
$701
10 years?
$984
20 years?
$1,935
Example for 5 years:
Answer
2.
Same facts as #1, except Diane finds an account earning 10%. How much will it be
worth in 5 years?
$805
10 years?
$1,297
20 years?
$3,364
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?
41%
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?
24%
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?
$208
6.
Same facts as #5, except the dealer also offers 48 payments at 8%. Now what will
Frank’s payments be?
$244
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?
$25.20
How much
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