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 €5 000 grows to €5 870 in 5 years with annual compounding. Find the annual interest rate i in percent.

PV = €5 000FV = €5 870n = 5

i = %

2.Easy

You deposit €10 000 in a savings account that pays 7% interest per year, compounded annually. How much is in the account after 12 years? Find the future value FV.

PV = €10 000i = 7%n = 12

FV = €

3.Medium

You need €15 000 in 7 years. An account pays 6% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €15 0006% / 12n = 7

PV = €

4.Medium

You need €5 000 in 10 years. An account pays 4% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €5 0004% / 4n = 10

PV = €

5.Hard

A mortgage of €200 000 is repaid with equal monthly payments over 20 years at 3% per year, compounded monthly. How much is still owed just after the payment at the end of year 6? Find the outstanding balance B.

P = €200 0003% / 12N = 240k = 72

B = €

6.Hard

You save €200 at the end of every month for 25 years. The account pays 3.6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2003.6% / 12N = 300

FV = €

Answer key

1. i = 3.26 %
2. FV = 22522 €
3. PV = 9866 €
4. PV = 3358 €
5. B = 152008 €
6. FV = 97086 €

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