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
years0123…9PV = ?€500€500€500…

A foundation wants to pay a prize of €500 at the end of every year, forever. The fund earns 2.5% interest per year. How much must be invested today? Find PV.

A = €500i = 2.5%
PV = €
2.Easy
years0123…12€4 000FV = ?

You deposit €4 000 in a savings account that pays 2.5% interest per year, compounded annually. How much is in the account after 12 years? Find the future value FV.

PV = €4 000i = 2.5%n = 12
FV = €
3.Medium
years0123…9PV = ?€20 000+1%+1%…r = 4%

A property is expected to earn net rent of €20 000 next year. The rent is expected to grow by 1% per year forever. The required return is 4% per year. Find the value PV of the property today.

C1 = €20 000g = 1%r = 4%
PV = €
4.Medium
periods01211 + EAR = ?15% / 2

A credit card charges a nominal interest rate of 15% per year, compounded semi-annually. Find the effective annual rate EAR in percent.

r = 15%m = 2
EAR = %
5.Hard
months0123…300€150 000A?AAA

A loan of €150 000 is repaid with equal monthly payments over 25 years. The interest rate is 2.4% per year, compounded monthly. Find the monthly payment A.

P = €150 0002.4% / 12N = 300
A = €
6.Hard
months0123…240€100€100€100FV = ?

You save €100 at the end of every month for 20 years. The account pays 7.2% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1007.2% / 12N = 240
FV = €

Answer key

  1. 1. PV = 20000 €
  2. 2. FV = 5380 €
  3. 3. PV = 666667 €
  4. 4. EAR = 15.56 %
  5. 5. A = 665.4 €
  6. 6. FV = 53376 €

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