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 €4 000 in a savings account that pays 7% interest per year, compounded annually. How much is in the account after 10 years? Find the future value FV.

PV = €4 000i = 7%n = 10

FV = €

2.Easy

A foundation wants to pay a prize of €2 500 at the end of every year, forever. The fund earns 2% interest per year. How much must be invested today? Find PV.

A = €2 500i = 2%

PV = €

3.Medium

You need €15 000 in 2 years. An account pays 4% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €15 0004% / 4n = 2

PV = €

4.Medium

An annuity pays €500 at the end of each year for 14 years. The interest rate is 10% per year. Find the present value PV of the annuity.

A = €500i = 10%n = 14

PV = €

5.Hard

A mortgage of €150 000 is repaid with equal monthly payments over 25 years at 6% per year, compounded monthly. How much is still owed just after the payment at the end of year 9? Find the outstanding balance B.

P = €150 0006% / 12N = 300k = 108

B = €

6.Hard

You deposit €2 000 at the start of every year for 23 years, the first deposit today. The account pays 8% per year. How much is in the account at the end of year 23? Find FV.

A = €2 000i = 8%n = 23

FV = €

Answer key

1. FV = 7869 €
2. PV = 125000 €
3. PV = 13852 €
4. PV = 3683 €
5. B = 119104 €
6. FV = 131530 €

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