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 €2 000 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 10 years? Find the future value FV.

PV = €2 000i = 3.5%n = 10

FV = €

2.Easy

A foundation wants to pay a prize of €2 000 at the end of every year, forever. The fund earns 8% interest per year. How much must be invested today? Find PV.

A = €2 000i = 8%

PV = €

3.Medium

An annuity pays €1 500 at the end of each year for 4 years. The interest rate is 10% per year. Find the present value PV of the annuity.

A = €1 500i = 10%n = 4

PV = €

4.Medium

You invest €20 000 at 8% per year with continuous compounding. Find the value FV after 14 years.

PV = €20 000r = 8%t = 14

FV = €

5.Hard

You deposit €3 000 at the start of every year for 22 years, the first deposit today. The account pays 7% per year. How much is in the account at the end of year 22? Find FV.

A = €3 000i = 7%n = 22

FV = €

6.Hard

You borrow €15 000 at 4.8% per year, compounded monthly, and repay €675 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 = €15 000A = €6754.8% / 12

N = payments

Answer key

1. FV = 2821 €
2. PV = 25000 €
3. PV = 4755 €
4. FV = 61297 €
5. FV = 157308 €
6. N = 24 payments

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