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 €7 500 in a savings account that pays 1.5% interest per year, compounded annually. How much is in the account after 8 years? Find the future value FV.

PV = €7 500i = 1.5%n = 8

FV = €

2.Easy

You deposit €10 000 at 6% 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 €20 000?

PV = €10 000FV = €20 000i = 6%

n = years

3.Medium

A property is expected to earn net rent of €10 000 next year. The rent is expected to grow by 2% per year forever. The required return is 8% per year. Find the value PV of the property today.

C₁ = €10 000g = 2%r = 8%

PV = €

4.Medium

A credit card charges a nominal interest rate of 24% per year, compounded quarterly. Find the effective annual rate EAR in percent.

r = 24%m = 4

EAR = %

5.Hard

You save €500 at the end of every month for 11 years. The account pays 6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €5006% / 12N = 132

FV = €

6.Hard

A mortgage of €150 000 is repaid with equal monthly payments over 25 years at 4.8% per year, compounded monthly. How much is still owed just after the payment at the end of year 20? Find the outstanding balance B.

P = €150 0004.8% / 12N = 300k = 240

B = €

Answer key

1. FV = 8449 €
2. n = 12 years
3. PV = 166667 €
4. EAR = 26.25 %
5. FV = 93161 €
6. B = 45767 €

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