time value of money worksheet

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Future Value Questions Question One Question Two Question Three You are the project manager of the NHQ Project. This project needs $456,786 to get started and will last three years. What is the future value of this investment considering the interest rate is 6 percent? You are the project manager of the XCV Project. This project needs $876,000 to get started and will last seven years. What is the future value of this investment considering the interest rate is 6 percent? You are the project manager of the UPD Project. This project needs $549,007 to get started and will last four years. What is the future value of this investment considering the interest rate is 6 percent? Here are a few questions that deal with the future and present value of money. I recommend you try to solve these by hand first, and then you can review your answers on the Formulas page. You can also make up your own questions and test your math agility.

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time value of money

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Page 1: Time Value of Money Worksheet

Future Value QuestionsQuestion One

Question Two

Question Three

You are the project manager of the NHQ Project. This project needs $456,786 to get started and will last three years. What is the future value of this investment considering the interest rate is 6 percent?

You are the project manager of the XCV Project. This project needs $876,000 to get started and will last seven years. What is the future value of this investment considering the interest rate is 6 percent?

You are the project manager of the UPD Project. This project needs $549,007 to get started and will last four years. What is the future value of this investment considering the interest rate is 6 percent?

Here are a few questions that deal with the future and present value of money. I recommend you try to solve these by hand first, and then you can review your answers on the Formulas page. You can also make up your own questions and test your math agility.

Page 2: Time Value of Money Worksheet

Present Value QuestionsQuestion One

Question Two

Question Three

You are the project manager of the AAX Project. You believe this project will be worth $1,987,112 in three years. What is the present value of this project's promised return if the assumed interest rate is 6 percent?

You are the project manager of the QSA Project. You believe this project will be worth $10,980,000 in five years. What is the present value of this project's promised return if the assumed interest rate is 6 percent?

You are the project manager of the QSA Project. You believe this project will be worth $765,000 in two years. What is the present value of this project's promised return if the assumed interest rate is 6 percent?

Page 3: Time Value of Money Worksheet

Future Value Formula

Fill in the value for your questions in the following cells.

PV is present valuei is the interest rate

n is the number of time periods

The following cells will be calculated for you based on the above entries.

Present value is(1 + i) is

Time value isFuture value result is

Present Value Formula

Fill in the value for your questions in the following cells.

FV is future valuei is the interest rate

n is the number of time periods

The following cells will be calculated for you based on the above entries.

Future value is(1 + i) is

Time value isPresent value result is

FV = PV(1 + i)n

PV = FV / (1 + i)n

A4
Joseph D. Phillips: This is the project's needed investment.
A5
Joseph D. Phillips: This is the rate of return or interest rate.
A6
Joseph D. Phillips: This is how long the project will last… usually years.
A17
Joseph D. Phillips: This is what the project promises to be worth.
A18
Joseph D. Phillips: This is the interest rate.
A19
Joseph D. Phillips: This is how long the project will last.
Page 4: Time Value of Money Worksheet

Future Value Formula

Fill in the value for your questions in the following cells.

$1,897,526 0.065

The following cells will be calculated for you based on the above entries.

$1,897,526.00 1.061.3382255776$2,539,317.83

Present Value Formula

Fill in the value for your questions in the following cells.

$789,456 0.063

The following cells will be calculated for you based on the above entries.

$789,456.00 1.061.191016$662,842.48