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 €5 000 in a savings account that pays 4% interest per year, compounded annually. How much is in the account after 6 years? Find the future value FV.

PV = €5 000i = 4%n = 6

FV = €

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 4 years? Find the future value FV.

PV = €4 000i = 3.5%n = 4

FV = €

3.Medium

You invest €12 000 at a nominal rate of 5% per year, compounded quarterly. Find the value FV of the investment after 4 years.

PV = €12 0005% / 4n = 4

FV = €

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

A mortgage of €250 000 is repaid with equal monthly payments over 25 years at 3.6% per year, compounded monthly. How much is still owed just after the payment at the end of year 12? Find the outstanding balance B.

P = €250 0003.6% / 12N = 300k = 144

B = €

6.Hard

A loan of €200 000 is repaid with equal monthly payments over 20 years at 2.4% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €200 0002.4% / 12N = 240

I = €

Answer key

1. FV = 6327 €
2. FV = 4590 €
3. FV = 14639 €
4. PV = 50000 €
5. B = 157412 €
6. I = 52021 €

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