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 €10 000 in a savings account that pays 2% interest per year, compounded annually. How much is in the account after 5 years? Find the future value FV.

PV = €10 000i = 2%n = 5

FV = €

2.Easy

You deposit €4 000 at 4% 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 €8 000?

PV = €4 000FV = €8 000i = 4%

n = years

3.Medium

An annuity pays €8 000 at the end of each year for 17 years. The interest rate is 4% per year. Find the present value PV of the annuity.

A = €8 000i = 4%n = 17

PV = €

4.Medium

You invest €12 000 at a nominal rate of 3.6% per year, compounded monthly. Find the value FV of the investment after 6 years.

PV = €12 0003.6% / 12n = 6

FV = €

5.Hard

A mortgage of €250 000 is repaid with equal monthly payments over 20 years at 7.2% per year, compounded monthly. How much is still owed just after the payment at the end of year 3? Find the outstanding balance B.

P = €250 0007.2% / 12N = 240k = 36

B = €

6.Hard

You save €50 at the end of every month for 18 years. The account pays 4.2% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €504.2% / 12N = 216

FV = €

Answer key

1. FV = 11041 €
2. n = 18 years
3. PV = 97325 €
4. FV = 14888 €
5. B = 231242 €
6. FV = 16099 €

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