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 = ?€1 000€1 000€1 000…

A foundation wants to pay a prize of €1 000 at the end of every year, forever. The fund earns 8% interest per year. How much must be invested today? Find PV.

A = €1 000i = 8%
PV = €
2.Easy
years01234567PV = ?€15 000

You will receive €15 000 in 7 years. The interest rate is 2.5% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €15 000i = 2.5%n = 7
PV = €
3.Medium
years0123…9€3 000FV = ?

You invest €3 000 at a nominal rate of 5% per year, compounded quarterly. Find the value FV of the investment after 9 years.

PV = €3 0005% / 4n = 9
FV = €
4.Medium
years0123…16€5 000FV = ?

You invest €5 000 at 5% per year with continuous compounding. Find the value FV after 16 years.

PV = €5 000r = 5%t = 16
FV = €
5.Hard
months0123…360€150 000A?AAA

A loan of €150 000 is repaid with equal monthly payments over 30 years. The interest rate is 4.2% per year, compounded monthly. Find the monthly payment A.

P = €150 0004.2% / 12N = 360
A = €
6.Hard
months0123…N = ?€20 000€300€300€300€3004.8% / 12

You borrow €20 000 at 4.8% per year, compounded monthly, and repay €300 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 = €3004.8% / 12
N = payments

Answer key

  1. 1. PV = 12500 €
  2. 2. PV = 12619 €
  3. 3. FV = 4692 €
  4. 4. FV = 11128 €
  5. 5. A = 733.5 €
  6. 6. N = 78 payments

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