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 3% interest per year, compounded annually. How much is in the account after 4 years? Find the future value FV.

PV = €2 500i = 3%n = 4

FV = €

2.Easy

A foundation wants to pay a prize of €5 000 at the end of every year, forever. The fund earns 6% interest per year. How much must be invested today? Find PV.

A = €5 000i = 6%

PV = €

3.Medium

A property is expected to earn net rent of €12 000 next year. The rent is expected to grow by 4% per year forever. The required return is 7% per year. Find the value PV of the property today.

C₁ = €12 000g = 4%r = 7%

PV = €

4.Medium

You need €40 000 in 9 years. An account pays 5% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €40 0005% / 4n = 9

PV = €

5.Hard

You borrow €20 000 at 4.8% per year, compounded monthly, and repay €275 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 = €20 000A = €2754.8% / 12

N = payments

6.Hard

You save €200 at the end of every month for 17 years. The account pays 6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2006% / 12N = 204

FV = €

Answer key

1. FV = 2814 €
2. PV = 83333 €
3. PV = 400000 €
4. PV = 25576 €
5. N = 87 payments
6. FV = 70646 €

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