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 €2 000 at 9% 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 €3 000?

PV = €2 000FV = €3 000i = 9%

n = years

2.Easy

You will receive €20 000 in 14 years. The interest rate is 7% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €20 000i = 7%n = 14

PV = €

3.Medium

An annuity pays €500 at the end of each year for 6 years. The interest rate is 3% per year. Find the present value PV of the annuity.

A = €500i = 3%n = 6

PV = €

4.Medium

You need €15 000 in 9 years. An account pays 4% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €15 0004% / 4n = 9

PV = €

5.Hard

A mortgage of €150 000 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 4? Find the outstanding balance B.

P = €150 0007.2% / 12N = 240k = 48

B = €

6.Hard

You deposit €2 000 at the start of every year for 5 years, the first deposit today. The account pays 5% per year. How much is in the account at the end of year 5? Find FV.

A = €2 000i = 5%n = 5

FV = €

Answer key

1. n = 5 years
2. PV = 7756 €
3. PV = 2709 €
4. PV = 10484 €
5. B = 134421 €
6. FV = 11604 €

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