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 = ?€500€500€500…

A foundation wants to pay a prize of €500 at the end of every year, forever. The fund earns 2% interest per year. How much must be invested today? Find PV.

A = €500i = 2%
PV = €
2.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 8% interest per year. How much must be invested today? Find PV.

A = €12 000i = 8%
PV = €
3.Medium
years0123…20€2 000FV = ?

You invest €2 000 at 2% per year with continuous compounding. Find the value FV after 20 years.

PV = €2 000r = 2%t = 20
FV = €
4.Medium
years01234567€2 000FV = ?

You invest €2 000 at a nominal rate of 3.6% per year, compounded quarterly. Find the value FV of the investment after 7 years.

PV = €2 0003.6% / 4n = 7
FV = €
5.Hard
months0123…48€15 000A?AAA

A loan of €15 000 is repaid with equal monthly payments over 4 years. The interest rate is 6% per year, compounded monthly. Find the monthly payment A.

P = €15 0006% / 12N = 48
A = €
6.Hard
years0123…13€2 500€2 500€2 500FV = ?

You deposit €2 500 at the start of every year for 13 years, the first deposit today. The account pays 8% per year. How much is in the account at the end of year 13? Find FV.

A = €2 500i = 8%n = 13
FV = €

Answer key

  1. 1. PV = 25000 €
  2. 2. PV = 150000 €
  3. 3. FV = 2984 €
  4. 4. FV = 2570 €
  5. 5. A = 352.3 €
  6. 6. FV = 58037 €

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