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

An investment of €10 000 grows to €11 260 in 6 years with annual compounding. Find the annual interest rate i in percent.

PV = €10 000FV = €11 260n = 6

i = %

2.Easy

You deposit €1 000 in a savings account that pays 2.5% interest per year, compounded annually. How much is in the account after 8 years? Find the future value FV.

PV = €1 000i = 2.5%n = 8

FV = €

3.Medium

A property is expected to earn net rent of €6 000 next year. The rent is expected to grow by 1% per year forever. The required return is 6% per year. Find the value PV of the property today.

C₁ = €6 000g = 1%r = 6%

PV = €

4.Medium

You invest €2 000 at 7% per year with continuous compounding. Find the value FV after 19 years.

PV = €2 000r = 7%t = 19

FV = €

5.Hard

You want €100 000 in 19 years. You save the same amount at the end of every month in an account paying 4.8% per year, compounded monthly. Find the monthly deposit A.

FV = €100 0004.8% / 12N = 228

A = €

6.Hard

A loan of €150 000 is repaid with equal monthly payments over 25 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 = 300

I = €

Answer key

1. i = 1.998 %
2. FV = 1218 €
3. PV = 120000 €
4. FV = 7562 €
5. A = 269.4 €
6. I = 63395 €

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