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
years0123…11€4 000€5 540

An investment of €4 000 grows to €5 540 in 11 years with annual compounding. Find the annual interest rate i in percent.

PV = €4 000FV = €5 540n = 11
i = %
2.Easy
years0123…9PV = ?€2 500€2 500€2 500…

A foundation wants to pay a prize of €2 500 at the end of every year, forever. The fund earns 2.5% interest per year. How much must be invested today? Find PV.

A = €2 500i = 2.5%
PV = €
3.Medium
years01234PV = ?€40 000

You need €40 000 in 4 years. An account pays 3% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €40 0003% / 4n = 4
PV = €
4.Medium
years01234567€2 000FV = ?

You invest €2 000 at 5% per year with continuous compounding. Find the value FV after 7 years.

PV = €2 000r = 5%t = 7
FV = €
5.Hard
months0123…300€200 000A?AAA

A loan of €200 000 is repaid with equal monthly payments over 25 years. The interest rate is 4.2% per year, compounded monthly. Find the monthly payment A.

P = €200 0004.2% / 12N = 300
A = €
6.Hard
months0123…72€15 000A?AAA

A loan of €15 000 is repaid with equal monthly payments over 6 years. The interest rate is 7.2% per year, compounded monthly. Find the monthly payment A.

P = €15 0007.2% / 12N = 72
A = €

Answer key

  1. 1. i = 3.005 %
  2. 2. PV = 100000 €
  3. 3. PV = 35493 €
  4. 4. FV = 2838 €
  5. 5. A = 1078 €
  6. 6. A = 257.2 €

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