Practice Exercises
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Learning Progress
0% completedFuture Value with Quarterly Compounding
tvm-real-001
An investor deposits **$5,000** into an account that pays a stated annual interest rate of **8%**, compounded **quarterly**. Calculate the value of the account at the end of **3 years**.
Present Value of a Lump Sum
tvm-real-002
A client requires **$100,000** in **5 years** to fund a business expansion. If they can earn a **6%** annual return compounded **monthly**, how much must they invest today?
Solving for Growth Rate (CAGR)
tvm-real-003
A company’s earnings per share (EPS) increased from **$2.50** to **$3.80** over a **6-year** period. Calculate the compound annual growth rate (CAGR).
Future Value of Ordinary Annuity
tvm-real-004
An investor plans to save **$2,000** at the **end of each year** for **20 years**. If the account earns an annual return of **7.5%**, what is the value at the end?
Retirement Funding (PV of Annuity)
tvm-real-005
A retiree wants to receive **$45,000** at the **end of each year** for **25 years**. If the fund earns **5%** annually, how much is needed in the fund today?
Car Loan Payment Calculation
tvm-real-006
A borrower takes out a **$25,000** car loan with a **4-year** term and a **6%** annual interest rate, compounded **monthly**. Calculate the monthly payment.
Education Savings (Annuity Due)
tvm-real-007
A parent plans to invest **$3,000** at the **beginning of each year** for **18 years**. If the account earns **6%** annually, what is the accumulated value?
Lease Liability (PV of Annuity Due)
tvm-real-008
A company leases a machine for **5 years** requiring annual payments of **$10,000** starting **immediately**. The discount rate is **8%**. Calculate the PV of the lease liability.
Net Present Value (NPV) Calculation
tvm-real-009
An investment requires **$100,000** today. It generates **$30,000** in Year 1, **$40,000** in Year 2, and **$50,000** in Year 3. Required return is **10%**. Calculate NPV.
Internal Rate of Return (IRR)
tvm-real-010
A project costs **$50,000** today and generates **$15,000**, **$20,000**, and **$25,000** over the next three years. Calculate the IRR.
Mortgage Interest Calculation
tvm-real-011
A **$300,000** mortgage for **30 years** at **4.5%** (monthly compounding). Calculate the **interest portion** of the **first monthly payment**.
Effective Annual Rate (EAR)
tvm-real-012
A credit card charges a nominal annual rate of **18%**, compounded **daily** (365 days). Calculate the Effective Annual Rate (EAR).
Deferred Perpetuity PV
tvm-real-013
An investment pays **$1,000** per year forever, with the first payment occurring **4 years** from today. Discount rate is **5%**. Calculate PV.
College Funding (Two-Stage)
tvm-real-014
Need **$25,000** per year for **4 years**, first payment **10 years** from today. Earn **6%**. How much to deposit **today**?
Principal Repayment
tvm-real-015
Mortgage **$300,000**, **30 years**, **4.5%** monthly. Calculate the **principal portion** of the **second monthly payment**.
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