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

A foundation wants to pay a prize of €500 at the end of every year, forever. The fund earns 4% interest per year. How much must be invested today? Find PV.

A = €500i = 4%

PV = €

2.Easy

A foundation wants to pay a prize of €2 000 at the end of every year, forever. The fund earns 4% interest per year. How much must be invested today? Find PV.

A = €2 000i = 4%

PV = €

3.Medium

You need €50 000 in 9 years. An account pays 3.6% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €50 0003.6% / 12n = 9

PV = €

4.Medium

You invest €5 000 at a nominal rate of 4.8% per year, compounded quarterly. Find the value FV of the investment after 3 years.

PV = €5 0004.8% / 4n = 3

FV = €

5.Hard

You deposit €2 500 at the start of every year for 20 years, the first deposit today. The account pays 7% per year. How much is in the account at the end of year 20? Find FV.

A = €2 500i = 7%n = 20

FV = €

6.Hard

A loan of €15 000 is repaid with equal monthly payments over 3 years at 4.2% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €15 0004.2% / 12N = 36

I = €

Answer key

1. PV = 12500 €
2. PV = 50000 €
3. PV = 36180 €
4. FV = 5769 €
5. FV = 109663 €
6. I = 991 €

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