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
years0123…9PV = ?€1 000€1 000€1 000…

A foundation wants to pay a prize of €1 000 at the end of every year, forever. The fund earns 6% interest per year. How much must be invested today? Find PV.

A = €1 000i = 6%
PV = €
2.Easy
years012n = ?€2 000€5 000

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 €5 000?

PV = €2 000FV = €5 000i = 9%
n = years
3.Medium
years0123…8PV = ?€40 000

You need €40 000 in 8 years. An account pays 3.6% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €40 0003.6% / 4n = 8
PV = €
4.Medium
years012345PV = ?€5 000

You need €5 000 in 5 years. An account pays 4% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €5 0004% / 4n = 5
PV = €
5.Hard
months0123…36€25 000A?AAA

A loan of €25 000 is repaid with equal monthly payments over 3 years. The interest rate is 2.4% per year, compounded monthly. Find the monthly payment A.

P = €25 0002.4% / 12N = 36
A = €
6.Hard
months0123…180€200 000AAAA2.4% / 12, I = ?

A loan of €200 000 is repaid with equal monthly payments over 15 years at 2.4% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €200 0002.4% / 12N = 180
I = €

Answer key

  1. 1. PV = 16667 €
  2. 2. n = 11 years
  3. 3. PV = 30029 €
  4. 4. PV = 4098 €
  5. 5. A = 720.4 €
  6. 6. I = 38353 €

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