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
years012n = ?€5 000€12 500

You deposit €5 000 at 9% 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 €12 500?

PV = €5 000FV = €12 500i = 9%
n = years
2.Easy
years0123…9PV = ?€1 000€1 000€1 000…

A foundation wants to pay a prize of €1 000 at the end of every year, forever. The fund earns 8% interest per year. How much must be invested today? Find PV.

A = €1 000i = 8%
PV = €
3.Medium
years0123€2 000FV = ?

You invest €2 000 at a nominal rate of 2% per year, compounded quarterly. Find the value FV of the investment after 3 years.

PV = €2 0002% / 4n = 3
FV = €
4.Medium
years012345€20 000FV = ?

You invest €20 000 at a nominal rate of 3% per year, compounded quarterly. Find the value FV of the investment after 5 years.

PV = €20 0003% / 4n = 5
FV = €
5.Hard
months0123…72€500€500€500FV = ?

You save €500 at the end of every month for 6 years. The account pays 3% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €5003% / 12N = 72
FV = €
6.Hard
months0123…240€250 000A?AAA

A loan of €250 000 is repaid with equal monthly payments over 20 years. The interest rate is 2.4% per year, compounded monthly. Find the monthly payment A.

P = €250 0002.4% / 12N = 240
A = €

Answer key

  1. 1. n = 11 years
  2. 2. PV = 12500 €
  3. 3. FV = 2123 €
  4. 4. FV = 23224 €
  5. 5. FV = 39390 €
  6. 6. A = 1313 €

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