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
years0123456€2 000FV = ?

You deposit €2 000 in a savings account that pays 4.5% interest per year, compounded annually. How much is in the account after 6 years? Find the future value FV.

PV = €2 000i = 4.5%n = 6
FV = €
2.Easy
years0123…8€8 000€11 160

An investment of €8 000 grows to €11 160 in 8 years with annual compounding. Find the annual interest rate i in percent.

PV = €8 000FV = €11 160n = 8
i = %
3.Medium
years012345PV = ?€40 000

You need €40 000 in 5 years. An account pays 3% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €40 0003% / 12n = 5
PV = €
4.Medium
years0123…9PV = ?€12 000+2.5%+2.5%…r = 8.5%

A property is expected to earn net rent of €12 000 next year. The rent is expected to grow by 2.5% per year forever. The required return is 8.5% per year. Find the value PV of the property today.

C1 = €12 000g = 2.5%r = 8.5%
PV = €
5.Hard
months0123…240€150 000A?AAA

A loan of €150 000 is repaid with equal monthly payments over 20 years. The interest rate is 3.6% per year, compounded monthly. Find the monthly payment A.

P = €150 0003.6% / 12N = 240
A = €
6.Hard
months0123…48€15 000A?AAA

A loan of €15 000 is repaid with equal monthly payments over 4 years. The interest rate is 4.8% per year, compounded monthly. Find the monthly payment A.

P = €15 0004.8% / 12N = 48
A = €

Answer key

  1. 1. FV = 2605 €
  2. 2. i = 4.249 %
  3. 3. PV = 34435 €
  4. 4. PV = 200000 €
  5. 5. A = 877.7 €
  6. 6. A = 344.1 €

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