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 2% 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 = 2%

n = years

2.Easy

A foundation wants to pay a prize of €2 000 at the end of every year, forever. The fund earns 8% interest per year. How much must be invested today? Find PV.

A = €2 000i = 8%

PV = €

3.Medium

You need €5 000 in 6 years. An account pays 6% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €5 0006% / 12n = 6

PV = €

4.Medium

You need €15 000 in 8 years. An account pays 3% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €15 0003% / 12n = 8

PV = €

5.Hard

A loan of €15 000 is repaid with equal monthly payments over 3 years at 4.2% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €15 0004.2% / 12N = 36

I = €

6.Hard

You deposit €2 000 at the start of every year for 24 years, the first deposit today. The account pays 7% per year. How much is in the account at the end of year 24? Find FV.

A = €2 000i = 7%n = 24

FV = €

Answer key

1. n = 56 years
2. PV = 25000 €
3. PV = 3492 €
4. PV = 11803 €
5. I = 991 €
6. FV = 124498 €

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