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 6% interest per year, compounded annually. How much is in the account after 11 years? Find the future value FV.

PV = €2 500i = 6%n = 11

FV = €

2.Easy

You deposit €5 000 at 6% 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 €10 000?

PV = €5 000FV = €10 000i = 6%

n = years

3.Medium

A property is expected to earn net rent of €2 000 next year. The rent is expected to grow by 2.5% per year forever. The required return is 6.5% per year. Find the value PV of the property today.

C₁ = €2 000g = 2.5%r = 6.5%

PV = €

4.Medium

You invest €5 000 at 5% per year with continuous compounding. Find the value FV after 6 years.

PV = €5 000r = 5%t = 6

FV = €

5.Hard

You want €50 000 in 10 years. You save the same amount at the end of every month in an account paying 2.4% per year, compounded monthly. Find the monthly deposit A.

FV = €50 0002.4% / 12N = 120

A = €

6.Hard

A loan of €200 000 is repaid with equal monthly payments over 25 years at 6% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €200 0006% / 12N = 300

I = €

Answer key

1. FV = 4746 €
2. n = 12 years
3. PV = 50000 €
4. FV = 6749 €
5. A = 369.1 €
6. I = 186581 €

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