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 €20 000 in 14 years. The interest rate is 4.5% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €20 000i = 4.5%n = 14

PV = €

2.Easy

You deposit €4 000 at 4% 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 €10 000?

PV = €4 000FV = €10 000i = 4%

n = years

3.Medium

You invest €2 000 at 2% per year with continuous compounding. Find the value FV after 9 years.

PV = €2 000r = 2%t = 9

FV = €

4.Medium

You need €25 000 in 2 years. An account pays 4.8% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €25 0004.8% / 12n = 2

PV = €

5.Hard

A mortgage of €250 000 is repaid with equal monthly payments over 25 years at 5.4% per year, compounded monthly. How much is still owed just after the payment at the end of year 12? Find the outstanding balance B.

P = €250 0005.4% / 12N = 300k = 144

B = €

6.Hard

You deposit €3 000 at the start of every year for 22 years, the first deposit today. The account pays 4% per year. How much is in the account at the end of year 22? Find FV.

A = €3 000i = 4%n = 22

FV = €

Answer key

1. PV = 10799 €
2. n = 24 years
3. FV = 2394 €
4. PV = 22716 €
5. B = 170150 €
6. FV = 106854 €

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