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 = ?€12 000€12 000€12 000…

A foundation wants to pay a prize of €12 000 at the end of every year, forever. The fund earns 2.5% interest per year. How much must be invested today? Find PV.

A = €12 000i = 2.5%
PV = €
2.Easy
years0123…12€5 000FV = ?

You deposit €5 000 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 12 years? Find the future value FV.

PV = €5 000i = 3.5%n = 12
FV = €
3.Medium
years0123…9PV = ?€2 000+3%+3%…r = 6%

A property is expected to earn net rent of €2 000 next year. The rent is expected to grow by 3% per year forever. The required return is 6% per year. Find the value PV of the property today.

C1 = €2 000g = 3%r = 6%
PV = €
4.Medium
years0123456€3 000FV = ?

You invest €3 000 at a nominal rate of 2% per year, compounded monthly. Find the value FV of the investment after 6 years.

PV = €3 0002% / 12n = 6
FV = €
5.Hard
months0123…360€150 000A?AAA

A loan of €150 000 is repaid with equal monthly payments over 30 years. The interest rate is 6% per year, compounded monthly. Find the monthly payment A.

P = €150 0006% / 12N = 360
A = €
6.Hard
months0123…132€100€100€100FV = ?

You save €100 at the end of every month for 11 years. The account pays 3.6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1003.6% / 12N = 132
FV = €

Answer key

  1. 1. PV = 480000 €
  2. 2. FV = 7555 €
  3. 3. PV = 66667 €
  4. 4. FV = 3382 €
  5. 5. A = 899.3 €
  6. 6. FV = 16166 €

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