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

You will receive €5 000 in 8 years. The interest rate is 2.5% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €5 000i = 2.5%n = 8

PV = €

2.Easy

You deposit €10 000 in a savings account that pays 4.5% interest per year, compounded annually. How much is in the account after 12 years? Find the future value FV.

PV = €10 000i = 4.5%n = 12

FV = €

3.Medium

A property is expected to earn net rent of €12 000 next year. The rent is expected to grow by 2% per year forever. The required return is 5% per year. Find the value PV of the property today.

C₁ = €12 000g = 2%r = 5%

PV = €

4.Medium

A property is expected to earn net rent of €10 000 next year. The rent is expected to grow by 2% per year forever. The required return is 4% per year. Find the value PV of the property today.

C₁ = €10 000g = 2%r = 4%

PV = €

5.Hard

A loan of €25 000 is repaid with equal monthly payments over 3 years. The interest rate is 3% per year, compounded monthly. Find the monthly payment A.

P = €25 0003% / 12N = 36

A = €

6.Hard

A loan of €10 000 is repaid with equal monthly payments over 7 years at 3% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €10 0003% / 12N = 84

I = €

Answer key

1. PV = 4104 €
2. FV = 16959 €
3. PV = 400000 €
4. PV = 500000 €
5. A = 727 €
6. I = 1099 €

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