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 deposit €4 000 in a savings account that pays 1.5% interest per year, compounded annually. How much is in the account after 7 years? Find the future value FV.

PV = €4 000i = 1.5%n = 7

FV = €

2.Easy

You deposit €2 500 at 5% 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 €6 250?

PV = €2 500FV = €6 250i = 5%

n = years

3.Medium

An annuity pays €5 000 at the end of each year for 7 years. The interest rate is 7% per year. Find the present value PV of the annuity.

A = €5 000i = 7%n = 7

PV = €

4.Medium

You invest €20 000 at 4% per year with continuous compounding. Find the value FV after 19 years.

PV = €20 000r = 4%t = 19

FV = €

5.Hard

You want €100 000 in 9 years. You save the same amount at the end of every month in an account paying 6% per year, compounded monthly. Find the monthly deposit A.

FV = €100 0006% / 12N = 108

A = €

6.Hard

A mortgage of €250 000 is repaid with equal monthly payments over 20 years at 5.4% per year, compounded monthly. How much is still owed just after the payment at the end of year 6? Find the outstanding balance B.

P = €250 0005.4% / 12N = 240k = 72

B = €

Answer key

1. FV = 4439 €
2. n = 19 years
3. PV = 26946 €
4. FV = 42766 €
5. A = 700.6 €
6. B = 200757 €

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