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 €1 000 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 €3 000?

PV = €1 000FV = €3 000i = 3%

n = years

2.Easy

A foundation wants to pay a prize of €1 000 at the end of every year, forever. The fund earns 2.5% interest per year. How much must be invested today? Find PV.

A = €1 000i = 2.5%

PV = €

3.Medium

An annuity pays €500 at the end of each year for 11 years. The interest rate is 3% per year. Find the present value PV of the annuity.

A = €500i = 3%n = 11

PV = €

4.Medium

You need €20 000 in 10 years. An account pays 3% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €20 0003% / 12n = 10

PV = €

5.Hard

You borrow €15 000 at 3.6% per year, compounded monthly, and repay €450 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 = €15 000A = €4503.6% / 12

N = payments

6.Hard

You save €200 at the end of every month for 15 years. The account pays 7.2% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2007.2% / 12N = 180

FV = €

Answer key

1. n = 38 years
2. PV = 40000 €
3. PV = 4626 €
4. PV = 14822 €
5. N = 36 payments
6. FV = 64506 €

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