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

An investment of €2 000 grows to €3 160 in 11 years with annual compounding. Find the annual interest rate i in percent.

PV = €2 000FV = €3 160n = 11

i = %

2.Easy

You deposit €2 500 at 6% 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 €6 250?

PV = €2 500FV = €6 250i = 6%

n = years

3.Medium

An annuity pays €1 000 at the end of each year for 20 years. The interest rate is 8% per year. Find the present value PV of the annuity.

A = €1 000i = 8%n = 20

PV = €

4.Medium

A property is expected to earn net rent of €12 000 next year. The rent is expected to grow by 1.5% per year forever. The required return is 6.5% per year. Find the value PV of the property today.

C₁ = €12 000g = 1.5%r = 6.5%

PV = €

5.Hard

You save €50 at the end of every month for 11 years. The account pays 5.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €505.4% / 12N = 132

FV = €

6.Hard

You borrow €20 000 at 4.2% per year, compounded monthly, and repay €375 at the end of every month. How many months does it take until the loan is repaid (the last payment may be smaller)? Give the number of payments N.

P = €20 000A = €3754.2% / 12

N = payments

Answer key

1. i = 4.246 %
2. n = 16 years
3. PV = 9818 €
4. PV = 240000 €
5. FV = 8987 €
6. N = 60 payments

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