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 = ?€1 000€1 000€1 000…

A foundation wants to pay a prize of €1 000 at the end of every year, forever. The fund earns 5% interest per year. How much must be invested today? Find PV.

A = €1 000i = 5%
PV = €
2.Easy
years01234567PV = ?€15 000

You will receive €15 000 in 7 years. The interest rate is 4% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €15 000i = 4%n = 7
PV = €
3.Medium
years0123456PV = ?€15 000

You need €15 000 in 6 years. An account pays 5% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €15 0005% / 12n = 6
PV = €
4.Medium
years012345PV = ?€40 000

You need €40 000 in 5 years. An account pays 3.6% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €40 0003.6% / 12n = 5
PV = €
5.Hard
months0123…300€50€50€50FV = ?

You save €50 at the end of every month for 25 years. The account pays 3% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €503% / 12N = 300
FV = €
6.Hard
months0123…N = ?€20 000€350€350€350€3506% / 12

You borrow €20 000 at 6% per year, compounded monthly, and repay €350 at the end of every month. How many months does it take until the loan is repaid (the last payment may be smaller)? Give the number of payments N.

P = €20 000A = €3506% / 12
N = payments

Answer key

  1. 1. PV = 20000 €
  2. 2. PV = 11399 €
  3. 3. PV = 11119 €
  4. 4. PV = 33420 €
  5. 5. FV = 22300 €
  6. 6. N = 68 payments

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