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 €12 000 at the end of every year, forever. The fund earns 6% interest per year. How much must be invested today? Find PV.

A = €12 000i = 6%

PV = €

2.Easy

You deposit €2 500 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 2 years? Find the future value FV.

PV = €2 500i = 3.5%n = 2

FV = €

3.Medium

You invest €2 000 at a nominal rate of 4% per year, compounded quarterly. Find the value FV of the investment after 7 years.

PV = €2 0004% / 4n = 7

FV = €

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 €15 000 at 4.2% per year, compounded monthly, and repay €675 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 = €15 000A = €6754.2% / 12

N = payments

6.Hard

You save €250 at the end of every month for 25 years. The account pays 4.2% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2504.2% / 12N = 300

FV = €

Answer key

1. PV = 200000 €
2. FV = 2678 €
3. FV = 2643 €
4. PV = 2621 €
5. N = 24 payments
6. FV = 132316 €

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