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
years01234PV = ?€25 000

You will receive €25 000 in 4 years. The interest rate is 5% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €25 000i = 5%n = 4
PV = €
2.Easy
years012n = ?€4 000€8 000

You deposit €4 000 at 3% 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 €8 000?

PV = €4 000FV = €8 000i = 3%
n = years
3.Medium
years0123456€1 000FV = ?

You invest €1 000 at a nominal rate of 3% per year, compounded monthly. Find the value FV of the investment after 6 years.

PV = €1 0003% / 12n = 6
FV = €
4.Medium
years012€10 000FV = ?

You invest €10 000 at 7% per year with continuous compounding. Find the value FV after 2 years.

PV = €10 000r = 7%t = 2
FV = €
5.Hard
months0123…240€150 000AAAA3% / 12, I = ?

A loan of €150 000 is repaid with equal monthly payments over 20 years at 3% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €150 0003% / 12N = 240
I = €
6.Hard
months0123…60€15 000A?AAA

A loan of €15 000 is repaid with equal monthly payments over 5 years. The interest rate is 4.2% per year, compounded monthly. Find the monthly payment A.

P = €15 0004.2% / 12N = 60
A = €

Answer key

  1. 1. PV = 20568 €
  2. 2. n = 24 years
  3. 3. FV = 1197 €
  4. 4. FV = 11503 €
  5. 5. I = 49655 €
  6. 6. A = 277.6 €

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