Exam FM topic · 5–15% syllabus weight

Exam FM Time Value of Money practice problems

Independently written solutions mapped to this official syllabus topic. Pages appear only after all required checks agree.

Topic orientation

What this topic tests

Time Value of Money establishes the rate language used throughout Exam FM: accumulation and discount functions, effective and nominal rates, discount rates, force of interest, and equations of value. The essential skill is converting every quotation to the period used by the cash flows.

Typical problems ask for an equivalent rate, an unknown time, or an amount at a specified comparison date. Write that date first, convert the rate once, and keep the exponent in rate periods. A BA II Plus TVM worksheet can confirm many level-cash-flow calculations, but rate conversion still has to be set up analytically.

Typical failure modes

Entering a nominal annual quotation as though it were an effective periodic rate
Moving different cash flows to different comparison dates
Using calendar years in an exponent when the rate is monthly or quarterly

Published ledger

Exam FM Time Value of Money practice problems and solutions

Each entry shows its independent calculation record and links to the official source without reproducing protected wording.

Drill one method at a time

Techniques that keep appearing in Time Value of Money

Each guide collects the questions above that turn on the same method, with the formulas and the errors that cost marks.

28 worked solutions

Exam FM Annual Force of Interest and Rate Conversion problems

Constant and variable force of interest, effective and nominal rate conversions, accumulation integrals, and 28 verified Exam FM solutions.

Study the whole topic offline

Every Exam FM sample question in one searchable PDF

The 51 pages above stay free. The manual collects the complete Exam FM sample set in syllabus order, with the same working, the wrong-choice notes, and one new practice problem per question.

See the Exam FM study manual PDF — $49 Free Exam FM formula sheet All Exam FM sample-question solutions