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
years01234567€2 000FV = ?

You deposit €2 000 in a savings account that pays 3% interest per year, compounded annually. How much is in the account after 7 years? Find the future value FV.

PV = €2 000i = 3%n = 7
FV = €
2.Easy
years0123…9PV = ?€10 000€10 000€10 000…

A foundation wants to pay a prize of €10 000 at the end of every year, forever. The fund earns 4% interest per year. How much must be invested today? Find PV.

A = €10 000i = 4%
PV = €
3.Medium
years012€8 000FV = ?

You invest €8 000 at a nominal rate of 5% per year, compounded monthly. Find the value FV of the investment after 2 years.

PV = €8 0005% / 12n = 2
FV = €
4.Medium
years01234€20 000FV = ?

You invest €20 000 at a nominal rate of 5% per year, compounded monthly. Find the value FV of the investment after 4 years.

PV = €20 0005% / 12n = 4
FV = €
5.Hard
months0123…N = ?€8 000€200€200€200€2003.6% / 12

You borrow €8 000 at 3.6% per year, compounded monthly, and repay €200 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 = €8 000A = €2003.6% / 12
N = payments
6.Hard
months0123…48€8 000A?AAA

A loan of €8 000 is repaid with equal monthly payments over 4 years. The interest rate is 3.6% per year, compounded monthly. Find the monthly payment A.

P = €8 0003.6% / 12N = 48
A = €

Answer key

  1. 1. FV = 2460 €
  2. 2. PV = 250000 €
  3. 3. FV = 8840 €
  4. 4. FV = 24418 €
  5. 5. N = 43 payments
  6. 6. A = 179.2 €

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