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 €500 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 3 years? Find the future value FV.

PV = €500i = 3.5%n = 3

FV = €

2.Easy

You deposit €2 500 at 3% 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 €3 750?

PV = €2 500FV = €3 750i = 3%

n = years

3.Medium

A property is expected to earn net rent of €8 000 next year. The rent is expected to grow by 1.5% per year forever. The required return is 3.5% per year. Find the value PV of the property today.

C₁ = €8 000g = 1.5%r = 3.5%

PV = €

4.Medium

You need €25 000 in 8 years. An account pays 4.8% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €25 0004.8% / 4n = 8

PV = €

5.Hard

You save €150 at the end of every month for 17 years. The account pays 4.2% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1504.2% / 12N = 204

FV = €

6.Hard

A loan of €12 000 is repaid with equal monthly payments over 5 years. The interest rate is 6% per year, compounded monthly. Find the monthly payment A.

P = €12 0006% / 12N = 60

A = €

Answer key

1. FV = 554.4 €
2. n = 14 years
3. PV = 400000 €
4. PV = 17067 €
5. FV = 44554 €
6. A = 232 €

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