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 €2 500 in a savings account that pays 2% interest per year, compounded annually. How much is in the account after 7 years? Find the future value FV.

PV = €2 500i = 2%n = 7

FV = €

2.Easy

A foundation wants to pay a prize of €1 000 at the end of every year, forever. The fund earns 2% interest per year. How much must be invested today? Find PV.

A = €1 000i = 2%

PV = €

3.Medium

A property is expected to earn net rent of €10 000 next year. The rent is expected to grow by 2.5% per year forever. The required return is 7.5% per year. Find the value PV of the property today.

C₁ = €10 000g = 2.5%r = 7.5%

PV = €

4.Medium

You need €5 000 in 9 years. An account pays 2% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €5 0002% / 4n = 9

PV = €

5.Hard

A loan of €15 000 is repaid with equal monthly payments over 3 years at 3% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €15 0003% / 12N = 36

I = €

6.Hard

You deposit €2 000 at the start of every year for 7 years, the first deposit today. The account pays 8% per year. How much is in the account at the end of year 7? Find FV.

A = €2 000i = 8%n = 7

FV = €

Answer key

1. FV = 2872 €
2. PV = 50000 €
3. PV = 200000 €
4. PV = 4178 €
5. I = 703.9 €
6. FV = 19273 €

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