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 €1 000 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 €3 000?

PV = €1 000FV = €3 000i = 9%

n = years

2.Easy

You deposit €10 000 in a savings account that pays 3% interest per year, compounded annually. How much is in the account after 3 years? Find the future value FV.

PV = €10 000i = 3%n = 3

FV = €

3.Medium

A credit card charges a nominal interest rate of 15% per year, compounded quarterly. Find the effective annual rate EAR in percent.

r = 15%m = 4

EAR = %

4.Medium

A property is expected to earn net rent of €2 000 next year. The rent is expected to grow by 3% per year forever. The required return is 7% per year. Find the value PV of the property today.

C₁ = €2 000g = 3%r = 7%

PV = €

5.Hard

You save €100 at the end of every month for 15 years. The account pays 4.8% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1004.8% / 12N = 180

FV = €

6.Hard

You save €100 at the end of every month for 29 years. The account pays 4.2% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1004.2% / 12N = 348

FV = €

Answer key

1. n = 13 years
2. FV = 10927 €
3. EAR = 15.87 %
4. PV = 50000 €
5. FV = 26287 €
6. FV = 67807 €

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