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.

New worksheet Practise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________ Date: ____________

1.Easy

You deposit €2 500 in a savings account that pays 3% interest per year, compounded annually. How much is in the account after 12 years? Find the future value FV.

PV = €2 500i = 3%n = 12

FV = €

2.Easy

You deposit €1 000 in a savings account that pays 1.5% interest per year, compounded annually. How much is in the account after 6 years? Find the future value FV.

PV = €1 000i = 1.5%n = 6

FV = €

3.Medium

You invest €5 000 at a nominal rate of 5% per year, compounded monthly. Find the value FV of the investment after 10 years.

PV = €5 0005% / 12n = 10

FV = €

4.Medium

A property is expected to earn net rent of €8 000 next year. The rent is expected to grow by 2.5% per year forever. The required return is 5.5% per year. Find the value PV of the property today.

C₁ = €8 000g = 2.5%r = 5.5%

PV = €

5.Hard

You save €500 at the end of every month for 27 years. The account pays 3% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €5003% / 12N = 324

FV = €

6.Hard

A mortgage of €250 000 is repaid with equal monthly payments over 30 years at 7.2% per year, compounded monthly. How much is still owed just after the payment at the end of year 8? Find the outstanding balance B.

P = €250 0007.2% / 12N = 360k = 96

B = €

Answer key

1. FV = 3564 €
2. FV = 1093 €
3. FV = 8235 €
4. PV = 266667 €
5. FV = 249127 €
6. B = 224530 €

Full step-by-step solutions: practise this topic on examproblems.com.