Time value of money worksheet with answers

Free printable Time value of money worksheet: 6 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

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Name: ____________________ Date: ____________

1.Easy

A foundation wants to pay a prize of €10 000 at the end of every year, forever. The fund earns 2% interest per year. How much must be invested today? Find PV.

A = €10 000i = 2%

PV = €

2.Easy

You deposit €10 000 at 2% interest per year, compounded annually (interest is added at the end of each year). After how many whole years n does the balance first reach at least €15 000?

PV = €10 000FV = €15 000i = 2%

n = years

3.Medium

You need €10 000 in 5 years. An account pays 3.6% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €10 0003.6% / 12n = 5

PV = €

4.Medium

An annuity pays €500 at the end of each year for 6 years. The interest rate is 4% per year. Find the present value PV of the annuity.

A = €500i = 4%n = 6

PV = €

5.Hard

You borrow €8 000 at 4.8% per year, compounded monthly, and repay €125 at the end of every month. How many months does it take until the loan is repaid (the last payment may be smaller)? Give the number of payments N.

P = €8 000A = €1254.8% / 12

N = payments

6.Hard

You want €30 000 in 20 years. You save the same amount at the end of every month in an account paying 3.6% per year, compounded monthly. Find the monthly deposit A.

FV = €30 0003.6% / 12N = 240

A = €

Answer key

1. PV = 500000 €
2. n = 21 years
3. PV = 8355 €
4. PV = 2621 €
5. N = 75 payments
6. A = 85.53 €

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