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 at 9% interest per year, compounded annually (interest is added at the end of each year). After how many whole years n does the balance first reach at least €3 750?

PV = €2 500FV = €3 750i = 9%

n = years

2.Easy

You deposit €4 000 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 8 years? Find the future value FV.

PV = €4 000i = 3.5%n = 8

FV = €

3.Medium

You invest €3 000 at a nominal rate of 2% per year, compounded monthly. Find the value FV of the investment after 2 years.

PV = €3 0002% / 12n = 2

FV = €

4.Medium

An annuity pays €1 500 at the end of each year for 5 years. The interest rate is 4% per year. Find the present value PV of the annuity.

A = €1 500i = 4%n = 5

PV = €

5.Hard

A loan of €20 000 is repaid with equal monthly payments over 4 years. The interest rate is 4.8% per year, compounded monthly. Find the monthly payment A.

P = €20 0004.8% / 12N = 48

A = €

6.Hard

You borrow €5 000 at 4.2% per year, compounded monthly, and repay €100 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 = €5 000A = €1004.2% / 12

N = payments

Answer key

1. n = 5 years
2. FV = 5267 €
3. FV = 3122 €
4. PV = 6678 €
5. A = 458.8 €
6. N = 56 payments

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