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…9PV = ?€500€500€500…

A foundation wants to pay a prize of €500 at the end of every year, forever. The fund earns 3% interest per year. How much must be invested today? Find PV.

A = €500i = 3%
PV = €
2.Easy
years012€1 000FV = ?

You deposit €1 000 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 2 years? Find the future value FV.

PV = €1 000i = 3.5%n = 2
FV = €
3.Medium
years0123456PV = ?€20 000

You need €20 000 in 6 years. An account pays 4% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €20 0004% / 4n = 6
PV = €
4.Medium
years01234567€5 000FV = ?

You invest €5 000 at a nominal rate of 3% per year, compounded monthly. Find the value FV of the investment after 7 years.

PV = €5 0003% / 12n = 7
FV = €
5.Hard
months0123…36€12 000A?AAA

A loan of €12 000 is repaid with equal monthly payments over 3 years. The interest rate is 3.6% per year, compounded monthly. Find the monthly payment A.

P = €12 0003.6% / 12N = 36
A = €
6.Hard
months01…228…360€300 000AB = ?A7.2% / 12

A mortgage of €300 000 is repaid with equal monthly payments over 30 years at 7.2% per year, compounded monthly. How much is still owed just after the payment at the end of year 19? Find the outstanding balance B.

P = €300 0007.2% / 12N = 360k = 228
B = €

Answer key

  1. 1. PV = 16667 €
  2. 2. FV = 1071 €
  3. 3. PV = 15751 €
  4. 4. FV = 6167 €
  5. 5. A = 352.2 €
  6. 6. B = 185305 €

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