       TEACHING AND LEARNING BASIC ECONOMICS - WORKSHEET LESSON PLAN ON TIME VALUE OF MONEY - FINANCE LESSONS # TIME VALUE OF MONEY INTRODUCTION WORKSHEET

click to go to worksheet A worksheet introducing students to the concept of the Time Value of Money (TVM).

Also introduces the concepts of Present Value and Future Value.

Time Value of Money is an important basic investing and financial concept to understand.
 LESSON LEARNED   Time Value of Money (TVM) introduction.

 OTHER SKILLS REINFORCED Multiplication Percentages

 SUGGESTED GRADE LEVELS   6+ Worksheet is customizable for multiple levels.

 Suggested Money Lesson Plan for this Worksheet   Ask the students what is the meaning of the following picture: (Time = Money) Why does time equal money?   Time Value of Money (TVM)If you have a dollar today, it is worth more than having a dollar next year.  This concept is also known as the Time Value of Money.  The Time Value of money means that if you have a dollar today, you can spend or invest it, so it is worth more than having a dollar in one year from now. For example, if you have \$100 and invest it, and the bank pays 5% interest, then in one year you will have an extra \$5.00 interest, or \$105 in total.  Therefore, \$100 is worth more in the future.  In this example, the Future Value of \$100 today is \$105. Related to Future Value is the concept of Present Value.  Present Value is the current value of money you will receive in the future.  In this example, the Present Value of the \$105 you will receive next year is \$100.  In other words, \$100 today is worth \$105 in a year.

 WORKSHEET Instructions   This worksheet is an introduction to the Time Value of Money.  Students need to fill in the table with the missing values for each of the problems.   This is a random worksheet. You may choose a standard worksheet or customize the worksheet to your teaching needs.   To customize the worksheet, you have several choices (see below).    Make your selections, then press "Get Worksheet."

STANDARD WORKSHEET Answers will automatically print on a separate page.

CUSTOM WORKSHEET Note - requires Full Membership

This worksheet may be customized with the following settings.

Make any changes you wish, then press "Get Worksheet".

 Number of Years     Maximum Present Value 100 1000 10000   Show Interest Amount Choose to either show amount of interest or have student fill in.   Include answers?  NOTE: Answers appear on a separate page when printed.       Note - requires Full Membership

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