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 €2 000 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 €6 000?

PV = €2 000FV = €6 000i = 6%

n = years

2.Easy

You deposit €10 000 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 9 years? Find the future value FV.

PV = €10 000i = 3.5%n = 9

FV = €

3.Medium

An annuity pays €500 at the end of each year for 19 years. The interest rate is 4% per year. Find the present value PV of the annuity.

A = €500i = 4%n = 19

PV = €

4.Medium

You need €25 000 in 10 years. An account pays 3% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €25 0003% / 4n = 10

PV = €

5.Hard

A mortgage of €200 000 is repaid with equal monthly payments over 30 years at 3.6% per year, compounded monthly. How much is still owed just after the payment at the end of year 8? Find the outstanding balance B.

P = €200 0003.6% / 12N = 360k = 96

B = €

6.Hard

You borrow €12 000 at 6% per year, compounded monthly, and repay €550 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 = €12 000A = €5506% / 12

N = payments

Answer key

1. n = 19 years
2. FV = 13629 €
3. PV = 6567 €
4. PV = 18541 €
5. B = 165650 €
6. N = 24 payments

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