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

A foundation wants to pay a prize of €12 000 at the end of every year, forever. The fund earns 2% interest per year. How much must be invested today? Find PV.

A = €12 000i = 2%

PV = €

2.Easy

You deposit €2 000 in a savings account that pays 4.5% interest per year, compounded annually. How much is in the account after 10 years? Find the future value FV.

PV = €2 000i = 4.5%n = 10

FV = €

3.Medium

You invest €1 000 at a nominal rate of 5% per year, compounded quarterly. Find the value FV of the investment after 8 years.

PV = €1 0005% / 4n = 8

FV = €

4.Medium

An annuity pays €500 at the end of each year for 10 years. The interest rate is 7% per year. Find the present value PV of the annuity.

A = €500i = 7%n = 10

PV = €

5.Hard

You deposit €2 500 at the start of every year for 13 years, the first deposit today. The account pays 3% per year. How much is in the account at the end of year 13? Find FV.

A = €2 500i = 3%n = 13

FV = €

6.Hard

You save €150 at the end of every month for 22 years. The account pays 4.8% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1504.8% / 12N = 264

FV = €

Answer key

1. PV = 600000 €
2. FV = 3106 €
3. FV = 1488 €
4. PV = 3512 €
5. FV = 40216 €
6. FV = 70080 €

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